Public Boards 2008 - Ghana Audit Service

Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations and Other

Statutory Institutions for the year ended 31 December 2008 1

REPORT OF THE AUDITOR-GENERAL ON THE PUBLIC ACCOUNTS OF GHANA – PUBLIC BOARDS,

CORPORATIONS AND OTHER STATUTORY INSTITUTIONS FOR YEAR ENDED

31 DECEMBER 2008

Introduction

The audit of the accounts of the Public Boards, Corporations and other Statutory Institutions for the period ended 31 December 2007 have been conducted in accordance with Article 187(2) of the 1992 Constitution of the Republic of Ghana.

2. The objective of the audit is to express an opinion on the accounts submitted to me by each Public Board, Corporation and other Statutory Institution for my examination.

3. I also evaluated the adequacy of the system of internal financial controls, compliance with relevant legislations, stated accounting policies and applicable financial rules and regulations of these organizations.

4. Matters raised in this report are among those which came to my notice during the period ended 31 December 2008. The observations, and recommendations arising out of the audits were discussed with management of the affected Institutions and comments received,where appropriate, have been incorporated in this report. The report is in three parts:

Part I provides a summary of the significant audit findings and recommendations;

Part II provides the significant findings and recommendations according to Sector Ministries; and

Part III deals with the details of findings and recommendations.



PART I

SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS

5. Presented in Table 1 is the financial impact of these irregularities with Table 2 showing the irregularities according to Sector Ministries.

Table 1: Summary of financial irregularities for the period ended 31 December 2008

No.Type of

Irregularities % Amount (US$)

Amount (GH¢)

TotalAmount (GH¢)

1Outstanding Debts/Loans/Recoverable Charges

64.6 643,240 12,240,220 13,006,576

2 Cash Irregularities 15.0 557,239 2,360,840 3,024,7353 Payroll Irregularities 1.0 - 195,117 195,1174 Procurement Irregularities 4.7 - 949,482 949,4825 Tax Irregularities 12.1 249,273 2,132,854 2,429,8386 Stores Irregularities 1.6 - 332,001 332,0017 Contract Irregularities 1.0 - 206,793 206,793

Total 100 1,449,752 18,417,307 20,144,542

6. Table 1 shows that the irregularities in monetary terms totalled GH¢20,144,542 which included US$1,449,752 converted into cedis at the prevailing exchange rate of GH¢1.1914 to the US$1 as at 31 December 2008.

Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2008 3

Table 2: Summary of Financial Irregularities according to Sector Ministries

Outstanding Debts/Loans/Recoverable

Charges

CashIrregularities

Payroll Irregularities

Procurement Irregularities

TaxIrregularities

Stores Irregularitie

s

Contract Irregularities

Sector Ministry US$ GH¢ US$ GH¢ GH¢ GH¢ US$ GH¢ GH¢ GH¢Min. of Energy 13,514 5,126,380 - 116,047 - 27,900 - - - -Min. of Education, Science & Sports - 314,193 - 98,383 - 5,557 - 862 - 202,761Min. of Information & National Orientation - 89,727 - 53,661 - - - - - -Min. of Water Resources, Works & Housing - 1,593,717 - 8,827 - - - 2,083,974 - -Min. of Health 629,726 796,925 557,239 1,127,788 178,697 808,956 161,902 40,774 - -Min. of Environment, Science & Technology - 3,315 - 48,272 - - - - - -Min. of Lands, Forestry & Mines - - - - - 27,549 - - 238,889 -Min. of Local Government - - - - - - 87,371 - - -Min. of Trade & industries - 4,310,078 - - 13,075 - - - 90,389 -Min. of Justice & Attorney-General - 1,810 - 899,344 - 21,476 - 6,942 - -Min. of Manpower, Youth & Employment - 4,075 - 3,529 1,871 20,425 - 216 2,723 4,032Min. of Interior - - - 4,989 1,474 - - 86 - -Other Agencies - - - - - 37,619 - - - -

Total 643,240 12,240,220 557,239 2,360,840 195,117 949,482 249,273 2,132,854 332,001 206,793



Outstanding debts/loans/recoverable charges - GH¢13,006,576

7. These irregularities relate to loans arising out of absence of proper policy on granting of credit facilities, ineffective monitoring and recovery system adopted, failure of management to send out periodic demand notices, management inability to vigorously pursue recovery of loans granted, poor internal controls, default in loan repayments, inadequate coordination between payroll and staff debtors sections.

8. I recommend that Management of Public Boards and Corporations should put in place proper policy on granting of loans. They should also vigorously pursue recovery of the loans granted and seek legal action where necessary.

Cash irregularities - GH¢3,024,735

9. These irregularities mostly relate to misapplication of funds, embezzlement, unauthorised use of Internally Generated Funds, overpayment of allowances, non-retirement of imprest and pilfering. These occurred as a result of lack of supervision and non-adherence to laid down regulations, operation of different accounts from organisations normal accounts, Internal Audit not diligent in its work, poor controls in the management of imprest systems and failure of management to put in place measures to ensure prompt retirement of imprest.

10. I recommend that Chief Executives should establish effective internal control systems including effective Internal Audit Unit, proper supervisory control over the accounts sections for early detection and rectification of such irregularities. They should also put in place measures to ensure prompt retirement of imprest.

Payroll irregularities - GH¢195,117

11. These irregularities include misapplication of funds from personnel emoluments, bloating of personnel emoluments, delay by the Controller and Accountant General Department in deleting names



of separated staff and non-payment to Government chest of unearned salaries. This was due to delayed notification of names of separated staff to the accounts office for deletion.

12. I recommend effective coordination between Administrative Heads and Accounts Units in order to provide timely information on separated staff for prompt deletion of these names from the payroll. I also advise proper scrutiny of personnel emoluments to avoid misapplication and bloating.

13. I further recommend that the bankers of separated staff should be promptly notified to withhold salaries paid into their bank accounts for early recoveries and advised Management of affected organisations to ensure recovery of the amount through their banks. They should also exercise proper supervisory control over personnel emoluments.

Procurement irregularities - GH¢949,482

14. Procurement Irregularities consist mainly of piecemeal procurement, weak controls and single sourcing. This resulted in non-application of procedures for public procurement and payment of unfair prices for goods.

15. I therefore recommend that Management of the respective Institutions should transact procurement dealings strictly in accordance with provisions of the Public Procurement Act, 2003 (Act 668).

Tax irregularities - GH¢2,429,83816. These irregularities comprise non-remission of taxes to Internal Revenue Service, not buying from VAT registered companies, failure to obtain VAT invoices and failure to withhold taxes.



17. I recommend that Accounts Officers should be sanctioned for non-deduction and prompt remittances of the amounts to Internal Revenue Service. Management should also desist from transacting business with non-registered VAT suppliers.

Stores irregularities - GH¢332,001 18. These lapses were caused by failure of Management to take proper care and custody of store items. They mostly comprise of Stock shortages, stolen items, purchases not routed through stores and inappropriate procedures in disposing off stores.

19. I recommend improved supervision over store items, good stock control systems and appropriate procedures implemented in disposing off stores and obsolete items.

Contract irregularities - GH¢206,79320. These relate to absence of contract agreements, jobs outstanding due to lack of materials and due diligence not being exercised in the award of contracts for project work.

21. I recommend that due diligence should be exercised in the award of contracts.AUDIT OPINION

22. Most financial statements submitted for audit were prepared under generally accepted accounting principles. Regrettably, whilst some accounting staff lacked the requisite book keeping and accounting skills, others did not attach seriousness to the preparation of the financial statements. Most Chief Executives were apathetic towards the preparation of the financial statements of their departments. This resulted in the inability of public institutions to prepare and submit their accounts on time to the Auditor-General. Consequently, the number of organizations we covered was limited because the stated weaknesses impaired our ability to conduct timely audits.



23. Once again I urge Chief Executives to show commitment in the financial management of their organizations by ensuring that the 31 March deadline for the submission of financial statements is complied with as stipulated by section 190 of the Financial Administration Regulations (FAR), 2004.

24. My office was satisfied, in all material respects that the 70 audited financial statements complied with Ghana Accounting Standard, relevant legislation, and presented a true and fair view of the financial position and performance of the agencies.

Submission of Accounts

25. Out of a total of 72 Public Boards and Corporations covered in 2008 only two failed to submit financial statements as at the time of reporting. As a result, I am unable to audit and report on the current status of the defaulting organization to provide accountability assurance to Parliament. Failure of the Organizations to prepare financial statements also deprived stakeholders of effective financial planning and decision making.

26. As stated in my earlier paragraph, staff constraints, lackadaisical attitude in the preparation of financial statements and the lack of adequate knowledge in accounting by Accounts Officers caused the delay or non-submission of accounts. We also attributed the anomaly to the apathy of the Chief Executives of the affectedorganizations towards the preparation of accounts.

27. These problems indicate that there is room for agencies to improve upon their processes for preparing their financial statements and annual reports. In particular, more attention needs to be given to compliance with the submission deadline of 31 March.



28. To enhance accountability and timely stewardship of public funds as well as effective financial management, I reiterate that sector Ministers should take remedial measures to ensure that Public Boards, Corporations and statutory Institution as a matter of urgency:

Fill the position of heads of account units with personnel having the requisite skill and experience;

Equip Account Officers with requisite book keeping and accounting skills;

resource their accounts departments to enable them clear the back log of outstanding accounts and submit them for audit by 31 December 2010.

install computerized accounting software to accelerate the production of financial statements for audit; and

sanction any Chief Executive who fails to prepare and submit for audit the organization’s financial statement by the 31 March deadline.



PART IISUMMARY OF FINDINGS AND RECOMMENDATIONS

MINISTRY OF ENERGY

NATIONAL PETROLEUM AUTHORITY

29. Due to ineffective management of the imprest system, a total amount of GH¢16,046.62 given out as imprest was not retired. We recommended that the affected personnel should be made to retire the imprest or be treated as personal advances and deducted from their wages and salaries. We also recommended that management should improve the imprest system to ensure prompt retirement.

30. We noted absence of proper documentation or loan agreement stipulating the terms and conditions of a loan of GH¢400,000 owed to Bulk Oil Storage Transportation since 2006. We recommended that the Authority should liaise with the Bulk Oil Storage Transportation to draw up an agreement to cover the loan contracted.

UNIFIED PETROLEUM PRICE FUND

31. Contrary to Section 73(2) of the National Petroleum Act 2005, Act 691 an amount of GH¢4,720,000 from the excess fund was used in December 2008 to settle under recoveries owed to two Oil Trading Companies whose activities did not form part of the Petroleum Downstream Industry. We recommended that UPPF should adhere to the relevant provisions of Act 691 and accordingly ensure that the under recoveries are refunded.

32. Due to improper record keeping by UPPF on Kero Fund an overpayment of GH¢100,000 was made to the Ministry of Energy during the year under review. We recommended that management should set up a separate account and books for the Kero Fund so as to facilitate easy tracking and verification. We also recommended refund of the overpaid sum.



MINISTRY OF EDUCATION

NATIONAL ACCREDITATION BOARD

33. Contrary to Regulation 199 (1) of L.I.1802, management authorised and approved the payment of hotel bills totalling GH¢19,398.43 without the requisite supporting documents. We recommend that the requisite supporting documents should be provided to acquit the payment. We also advised management to ensure that future transactions are properly acquitted.

NATIONAL COUNCIL FOR TERTIARY EDUCATION

34. Contrary to Regulation 183 (4) of L.I. 1802, management made purchases amounting to GH¢2,671.00 from non-VAT registered persons, resulting in the loss of a tax revenue of GH¢380.64 to the state. We advised that the purchase of goods and services should be made from VAT registered persons in order to contribute to the revenue generation of the state.

35. Due to improper storage of relevant documents, payment vouchers amounting to GH¢9,772.39 could not be produced for audit. We recommended that steps should be taken to trace the payment vouchers for audit and advised that management should ensure that accounting records are kept in a manner that facilitates ready access for reference as enjoined by FAR 262.

36. Contrary to Regulations 171(2) (b) and 171(1) of the FAR, an amount of GH65,451, representing the balance remaining out of funds for payment of personnel emolument was used to meet administrative expenses without the required approval from the appropriate authority. We recommended that the Council should obtain approval from the appropriate authority to rectify the anomaly.



GOVERNMENT TECHNICAL TRAINING CENTRE

37. Out of a total revenue collection of GH¢25,043.58 only GH ¢21,282.75 was banked, resulting in an unaccounted balance of GH¢ 3,760.83. We recommended that the cashier should account for the outstanding balance of GH¢3,760.83 and advised the Accountant to supervise the work of the cashier to prevent recurrence of the anomaly.

38. The Centre printed 100 receipt books in 2004 without recourse to Regulations 211 & 212 of L.I. 1802 which require the procurement of value books to be routed through the Controller and Accountant-General (C & AG) To preclude revenue leakages, we recommended that management routes the procurement of its value books through the C &AG.

39. Due to lack of funds, three years after the demolition of GTTC’s canteen, which housed two classrooms, the construction of a six-classroom block to replace it had not taken off. To address the acute classroom accommodation problem and prevent escalation of the contract sum, we recommended to management to liaise with the Sector Ministry to source for funding from Ministry of Finance and Economic Planning (MoFEP) for the construction.

40. Due to poor drainage system, the June 2009 heavy rains in Accra resulted in flooding of the compound of GTTC. Consequently items and equipment estimated by management to be GH¢40,000.00 was destroyed. We recommended that, management, as a matter of urgency should seek technical assistance from Accra Metropolitan Assembly to prevent future flooding.

41. Management failed to establish an Audit Report Implementation Committee (ARIC) in contravention of Section 30 of Audit Service Act 2000, (Act 584). For implementation of



recommendations contained in audit and internal monitoring reports, we advised management to establish an ARIC as early as possible.

GHANA SCIENCE ASSOCIATION

42. In contravention of Section 84(1) (a) and (b) of the Internal Revenue Service Act, 2000(Act 592), the required withholding tax of GH¢480.09 was not deducted on the total amount of GH¢4,296.00 paid as sitting allowance to members of the National Executive Committee (NEC) and other committees. As this resulted in the loss of tax revenue to the state, management was advised to promptly deduct and pay same to the Commissioner of IRS, the appropriate tax on all future sitting allowances for avoidance of surcharges.

43. The operations of the Association were not regulated by any Act of Parliament, which would otherwise strengthen its legal existence and enhance continuous parliamentary support financially. We advised management to contact Parliament through the Ministry of Education and other stakeholders to enact an establishment law for the Association.

44. Contrary to Part II Section 16(5) of the Internal Audit Agency Act, 2003 (Act 658), the GSA had no Internal Audit Unit. For sound financial practices and to enhance best management practices, we advised management to seek the services of an Internal Auditor from the Internal Audit Agency.

45. We observed that the GSA did not have any departmental accounting instructions to regulate its financial business in contravention to Section 4(1) of the Financial Administration Regulation (FAR,) 2004. Management was advised to prepare departmental accounting instructions to regulate financial business of the Association.



ENCYCLOPEDIA AFRICANA PROJECT

46. In contravention to Section 16(1) of the Internal Audit Agency Act, 2003, (Act 658) management had not established an Internal Audit Unit. We recommended the establishment of an Internal Audit Unit as required by Act 658 without any delay for sound financial practices and also to enhance best management practices.

47. A former staff, Mr. Ken D. Addo had an outstanding loan balance of GH¢139.51 which was not recovered prior to desertion of his post. As this could result in loss of funds to EAP, we recommended that management should make strenuous efforts to locate and retrieve the above stated amount from Mr. Ken Addo.

48. Due to lack of management supervision and inadequate controls over the use of vehicles, we observed that drivers failed to record in their respective vehicles’ log books fuel totalling GH¢5,557.40, contrary to Chapter 1604 of Store Regulations 1984. We advised management to ensure that the fuel and future issues to drivers are properly accounted for, failing which the amount should be recovered from them. We also advised management to improve upon its supervisory role over drivers.

49. We noted that purchases amounting to GH¢4,791.23 were not routed through stores before usage, in contravention to Stores Regulations 0502. To forestall diversion of stores and provide an effective audit trail, we recommended that all future procurements should be taken on ledger charge.

50. Due to inadequate funding, the standing committee of the Editorial Board of EAP has not met since 1962; hence stakeholders’ interest in the Project had waned and only three out of the 20-volume dictionary on African biography had been published during the Project’s 48 years of existence. We advised management to appeal to relevant bodies for the necessary funding to authorise Editorial Board meeting in order to elect new members of the standing committee and revamp interest in the Project.



UNIVERSITY OF DEVELOPMENT STUDIES

51. Two Companies failed to deliver goods after the University paid an initial deposit of GH¢6,000 in 2007. We recommended that immediate steps be taken to recover the amount involved.

52. Due to ineffective monitoring of bank accounts, four bank accounts were overdrawn by GH¢294,328 without overdraft facilities from the banks. We recommended that the bank accounts should be effectively managed to ensure that they are not unduly overdrawn.

MINISTRY OF INFORMATION

GHANA NEWS AGENCY

53. We observed that due to Ghana News Agency management’s inaction and improper record keeping, staff outstanding loans, advert and subscription debts amounted to GH¢89,736.88. We urged management to improve on record keeping, introduce a policy and take utmost care in granting of credits and hold officers liable for breach of the conditions. Management should recover the outstanding debt of GH¢ 89,736.88

NEW TIMES CORPORATION

54. Due to absence of policy guidelines on staff accountable imprest, staff were given additional imprests though the previous imprests had not been retired. Consequently outstanding accountable imprest as at 31 December 2008 stood at GH¢53,661, some dating as far back as 2000. We advised management and the Board to institute a policy document accountable imprest that specifies the period within which to retire an imprest. We also recommended review and retirement of all outstanding imprests or the sums be adjusted to a personal account in their names and necessary recoveries made.



MINISTRY OF WATER RESOURCES, WORKS AND HOUSING

ARCHITECTURAL AND ENGINEERING SERVICES

LIMITED

We noted that total amount owed to IRS, VAT and SSNIT increased from GH¢974,197 in 2007 to GH¢1,109,777 in 2008. We advised that the Company should take steps to settle all arrears and desist from carrying huge balances on these accounts from year to year.

PUBLIC SERVANT HOUSING LOAN SCHEME (PSHLS)

55. Contrary to Section 16(1) of the Internal Audit Agency Act 2003, (Act 658), we noted the absence of an internal audit unit at the Board. For sound financial practices and to enhance best management practices, we advised the Executive Director to liaise with its Sector Ministry to set up an internal audit unit for the Board.

56. Operations of the PSHLSB disclosed gross weaknesses in the keeping and recording of transactions in borrowers ledger accounts and non-compliance with loan policies which resulted in outstanding debts of GH¢1,317,732.17, unrecorded loans of GH¢263,775.40, uncredited recoveries of GH¢33,338.36 and dishonoured cheques amounting to GH¢12,209.44. We therefore recommended that management take immediate steps to recover the overdue loans, automate the Board’s accounting system and ensure adherence to loan requirements.

MINISTRY OF HEALTH

FOOD AND DRUGS BOARD

57. Contrary to Regulations 47(3 and 4) and 140 of L.I 1802, we noted the opening of unauthorised bank accounts and investments by Food and Drugs Board (FDB) management. We recommended to



FDB management to comply with the FAR by regularizing the transactions

58. Cash irregularities, which included unaccounted for revenue and imprest, unreceipted payments and overpayment of allowances, amounted to GH371,234.93 and US$356,626.80. For accountability of the funds, we recommended that the former head of Accounts and the former Approving officer should be held liable.

59. We observed that excess funds of GH¢178,697.40 for 2006 and 2007 were budgeted and released for the payment of salaries of FDB employees. The former Chief Executive and former head of accounts should be held accountable for the excess receipt of funds.

60. Due to the Internal Audit Department’s failure to confirm the accuracy of returns, management failed to disclose US$145,524.03 and GH¢75,880.00 of its IGF on returns to the relevant authorities enumerated by Regulation 19(1) of L.I.1802. We recommended that management should ensure that the Internal Audit Department checks returns for completeness to facilitate C&AG’s financial reporting and government’s distribution of financial resources.

61. In contravention to Section 30(2) of the Financial Administration Act (FAA), 2003 (Act 654), management transacted business with non-VAT registered entities leading to the loss of GH¢5,448.75 in tax revenue to the state. We recommended that in future the Board abide by all provisions of Act 654 in relation to its financial dealings.

62. Fragmentation of procurement to avoid tendering procedures totalling GH¢808,955.60 was noted. We advised management to comply strictly with provisions of the Public Procurement Act, 2003 (Act 663) to secure value for money and enhance transparency.



NURSES AND MIDWIVES COUNCIL

63. The Council used Internally Generated Funds (IGF) amounting to GH¢311,664.46 out of GH¢1,623,330.41 generated to purchase 10 vehicles instead of paying the total revenue into the Consolidated Fund in violation of Regulation 17(b) of L.I.1802. Much as we agreed with management that the Council’s budgetary allocation might not meet all its requirements, we recommended that the use of IGF must be considered only after obtaining the required approval.

ST JOHN’S AMBULANCE

64. The establishment law, St. John Council of Ghana Act, 1959, (Act 57) which regulates the operations of St. John Ambulance (Gh), did not provide adequate background or authorisation for the transactions and activities currently undertaken. We advised management to liase with the appropriate authorities for early action on a revised enabling enactment.

GHANA AIDS COMMISSION

MULTISECTORAL HIV/ AIDS PROGRAMME

65. Contrary to Section 88(1) of the Internal Revenue Act 2000 (Act592), the Commission failed to deduct withholding taxes amounting to US$161,901.70 from services rendered by some hotels. We recommended that the withholding taxes should be recovered and paid to IRS.

66. Due to absence of due diligence, the Commission paid GH¢204,000 to Divestiture Implementation Committee towards the purchase of GNTC Bungalow No. 4 at the time the area had already been sold by the Osu Stool to a private developer. We recommended that management should contact DIC to resolve the issue or demand refund of the amount.



MINISTRY OF ENVIRONMENT, SCIENCE ANDTECHNOLOGY

BUILDING AND ROAD RESEARCH INSTITUTE

67. Contrary to the Institute’s policy of retiring imprest within two weeks we noted outstanding imprest of GH¢37,864.73 as at 31 December 2008 some dating back to 2007. We recommended that the affected officials should retire the imprest or the amount should be treated as advances and charged to their personal accounts. Management should also introduce sanctions to compel officials to comply with the directives.

INSTITUTE OF INDUSTRIAL RESEARCH (IIR) COUNCIL FOR

SCIENTIFIC AND INDUSTRIAL RESEARCH (CSIR)

68. As a result of apathy towards debt recovery, trade debtors balance of GH¢55,703 included static balance of GH¢3,315.26. We recommended that strenuous efforts should be made by management to collect these debts in order to prevent losses.

FOOD RESEARCH INSTITUTE (CSIR)

69. We noted overall duty and vehicle maintenance allowance totaling GH¢242,586.34 paid to staff not included in the earnings of employees before computation of their PAYE deductions. We advised management to ensure that all cash allowances are included in the computation of PAYE.

70. Locations of three laptops valued at GH¢4,600 purchased in 2007 were not shown in the Fixed Asset Register for verification of their existence and serial numbers. We recommended to management to ensure that locations of all fixed assets are indicated or shown in the Fixed Asset Register to facilitate verification. In addition, the laptops should be produced for verification.



MINISTRY OF CULTURE AND CHIEFTANCY

NATIONAL SYMPHONY ORCHESTRA

71. Contrary to Section 29 of the Audit Service Act, 2000 (Act 584) and the absence of an Audit Report Implementation Committee (ARIC), management failed to respond to our audit report No. CAD/DA.5/Vol.1/03 dated 25 September 2007. To avoid the recurrence of shortcomings identified in audit and other monitoring reports, we advised management to establish an ARIC without further delay to take immediate action on all audit reports.

MINISTRY OF LANDS, FORESTRY AND MINES

OFFICE OF THE ADMINSTRATOR OF STOOL LANDS

72. Notwithstanding Store Regulation 1604, issued fuel coupons totalling GH¢27,549.00 were not accounted for in the vehicle log books by the drivers in charge. Management should account for the fuel coupons amounting to GH¢2,754.49.We also advised management to exercise adequate control over the transport section by ensuring that in future, drivers account for issued fuel coupons while officers using the vehicles are made to certify journeys undertaken.

PRECIOUS MINERALS MARKETING COMPANY LIMITED (PMMC)

73. We noted outstanding stock shortage of GH¢238,889 due to Jewellery returned from outstations to Head Office which could not be accounted for by the then Divisional Accountant, Stephen Pagfu. We recommended to management to pursue the Court case for necessary recovery of the amount.



MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELPMENT

MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT SECOND URBAN ENVIRONMENTAL

SANITATION PROJECT (UESPII)IDA CREDIT NO. 3889-GH, AFD CREDIT NO. CGH 6006 OU,

NDF CREDIT NO. 430 AND GOVERNMENT OF GHANA FUNDS

74. Contrary to Section 87 of the Internal Revenue Act 592 the Project failed to remit withholding tax totaling US$42,625 deducted from payments made to contractors, consultants and suppliers to IRS. We advised management to pay the taxes to IRS without further delay.

75. We noted non-payments of 15% VAT on procurement of goods and services of US$44,746. Management was advised to comply with the VAT law and ensure that the 15% VAT is promptly settled.

MINISTRY OF TRANSPORT

GHANA CIVIL AVIATION AUTHORITY76. We noted an outstanding imprest of GH¢12,543 for four officials some dating back to 2007. We recommended that all outstanding imprests are retrieved immediately and that the Authority should adhere to its laid down procedures on management of imprest.

77. We noted that the Authority had not obtained valid title deeds to cover most of its lands and operating sites including some of those transferred to the Ghana Airports Company Limited. We advised management to intensify its efforts to have title deeds for its properties.



MINISTRY OF TRADE AND INDUSTRY

GHANA HEAVY EQUIPMENT LIMITED

78. Due to ineffective debt collections system trade debtors amounting to GH¢4,286,401 showed little movement even after hiring debt collection company. We recommended that strenuous efforts be made by management to review and pursue recovery of the debts.

NATIONAL BOARD FOR SMALL SCALE INDUSTRIES

79. Due to poor recovery system Fourteen Beneficiaries granted loans totaling GH¢42,663.98 in 2008 have defaulted to the tune of GH¢23,676.67. We recommended that management adopts stringent measures to recover the total loan of GH¢23,676.67 defaulted.

80. Seven separated officers were paid a total unearned salaries of GH¢13,075.29 between January 2009 and October 2009. Management was advised to recover the unearned salaries. We also advised management to put in place the necessary measures that would prevent a recurrence of the anomaly.

EXPORT PROMOTION COUNCIL

81. Due to ineffective control over the safety and custody of official documents, four official receipt books could not be produced for audit. We recommended that management should investigate the issue and take remedial action to forestall a recurrence and revenue leakage.

82. As a result of the absence of a substantive storekeeper, various purchases amounting to GH¢90,388.52 were not routed through stores before usage in violation of Store Regulations 0502 and 0694 of 1984. For stores accountability, we recommended that management should either engage a substantive storekeeper or train an officer to be responsible for the stores.



MINSTRY OF JUSTICE AND ATTORNEY GENERAL’S DEPARTMENT

COMMISSION ON HUMAN RIGHTS AND ADMINISTRATIVE JUSTICE

83. Due to lapses in the accounting system of CHRAJ, the financial statements for 2007 was delayed for a period of 21 months before submission for audit whilst the 2008 accounts was yet to be finalised as at the time of reporting, in contravention to Regulation 190 of Financial Administration Regulations (FAR), 2004 (L. 1. 1802). We recommended improvement in the accounting systems by the maintenance of ledgers to ensure timely preparation and submission of financial statements for audit within the stipulated period, so as to provide accountability assurance to stakeholders.

84. As a result of poor record keeping and improper storage of accounting records, payment vouchers amounting to GH¢720,768.45 were not presented for audit, to authenticate the payments. We recommended training of accounting officers in records management. We also recommended that the payment vouchers should be traced and presented for audit or the responsible accounting officer be held liable for refund of the amount.

85. Imprest amounting to GH¢36,005.35 advanced to officers for various programmes were neither retired nor accounted for though the programmes had been executed. To forestall misapplication of funds, we recommended that the officers involved be made to account for the imprest or the sums be adjusted to a personal advance account in their names as directed by Regulation 288 of L.I. 1802.

COPYRIGHT OFFICE

86. Contrary to Regulation 17(b) of LI 1802 on retention of Internally Generated Fund, an amount of GH¢94,699.56 for the period was used to meet administrative expenses without approval. We



recommended and management agreed to obtain the required approval to retain its IGF, otherwise all monies collected should be paid promptly and in gross unto the consolidated Fund.

87. Internally Generated Fund for Gamugram and Audio Visuals amounting to GH¢47,860.66 collected with authorised and unauthorised GCRs was not accounted for. We also noted unapproved receipt books not recorded in the stock register whilst seven GCRs issued from the stock register not presented for audit. We recommended that the Accountant should account for the amount of GH¢47,860.66 and advised management to strengthen its internal controls to forestall a recurrence of the anomaly. Additionally procurement of all value books should be routed through C& AG and recorded in the stock register.

88. Contrary to Regulation 111 of LI. 1802 which requires maintenance of accounts on all advances and recoveries management failed to maintain accounts on advances amounting to GH¢1,810. We advised management to ensure recovery of the amount and maintain proper books of accounts on advances in order to facilitate monitoring and prompt repayments.

MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS COUNCIL

89. The Council engaged the services of a legal consultant in a supplementary contract, which involved some functions of the Marketing Department for a fee of 4% of revenue generated by him. We also noted that prior to the signing of the agreement, the Council paid the consultant an amount of GH¢4,032.00 for no services rendered. We advised management to abrogate the auxiliary contract and allow the Marketing Department of NSC to perform its mandate for avoidance of excess expenditure. We also recommended that the illegitimate payment of GH¢4,032 should be refunded by the consultant.



90. Management’s failure to put in place mechanisms for the prompt recovery of loans, resulted in unrecovered loans of GH¢4,074.65 owed by 17 former employees. We advised management to retrieve the money from the former officers or their relatives where appropriate without further delay. Also, an effective mechanism should be put in place to ensure full recovery of all loans before separation of staff from the Council as required by the regulation stated.

91. The Accountant failed to obtain VAT/NHIL invoices for payment made to a supplier which included VAT/NHIL of GH¢216.00. As this could result in the loss of tax revenue to the state, we advised management to ensure that the invoices are obtained from the supplier or the amount recovered.

92. An amount of GH¢1,870.98 was wrongly paid to four separated staff of the Council because of inappropriate certification of salary payment vouchers, delays in notifying the Controller and Accountant General Department (C&AGD) to delete names of separated employees from payroll and lack of communication with respective banks. To forestall loss of funds, we advised management to pursue recovery of the unearned salaries from the former employees and pay same to government chest. We also advised management to in future, promptly notify C&AGD and bankers of separated staff for appropriate action to be taken to prevent the occurrence of the anomaly.

93. We noted the theft of furnishing amounting to GH¢2,722.85 at the Council’s guesthouse. We advised that the officer in charge of the Guest House should account for the loss and effective security measures should be put in place to safeguard all the Council’s properties.

94. The former Chief Executive allegedly failed to return his official vehicle when he was posted to the Ministry of Youth and



Sports. We recommended to management to take appropriate action to retrieve the vehicle for use by NSC.

NATIONAL YOUTH COUNCIL

95. Purchases of fuel and lubricants amounting to GH¢20,425.00 could not be traced into vehicle log books. We advised management to strengthen its internal controls and supervision over drivers. We also recommended that fuel and lubricants amounting to GH¢20,425 should be accounted for.

96. We noted that a total non-tax revenue amounting to GH¢3,529.24 for the period January to December 2008 was not accounted for. Also, a non-tax revenue of GH¢3,366.76 lodged into the Council’s operational account was not transferred into the Consolidated Fund but used to meet administrative expenses. We recommended that, the Accountant should be held liable for the unaccounted sum of GH¢3,529.24 and until management seeks approval to retain its Internally Generated Fund (IGF), all non-tax revenue should be promptly paid into the Consolidated Fund.

MINISTRY OF INTERIOR

NARCOTIC CONTROL BOARD

97. Out of an amount of GH¢32,280.00 paid to some employees as loans and advances, only GH¢1,000.00 had been refunded as at the time of reporting. We advised management to recover the outstanding balance of GH¢31,280.00 without delay and improve its loan recovery.

98. Management failed to ensure that two drivers of the Board obtained police reports on their involvements in separate accidents whilst driving official vehicles. We also noted that these drivers were yet to refund to the Board an amount of GH¢979.50 being expenses incurred on an accident victim and repairs of a private vehicle. We recommended that management should in future ensure that all motor accidents are reported and police reports obtained, in order to



apportion blame thereby preventing wasteful expenditure and disputes. We also recommended that the amount of GH¢979.50 should be recovered from the affected divers.

99. Contrary to Regulation 19 of the Value Added Tax (VAT) Regulations 1998, (L.I.1646), the Accountant failed to demand VAT/NHIL invoice for payments made to two suppliers of goods and services which included a VAT/NHIL charge of GH¢85.83. We advised the Accountant to obtain the VAT/NHIL invoices from the companies involved, otherwise the amount should be recovered from them. We also advised that in future VAT/NHIL invoices should be obtained for all VAT related payments.

100. A payment voucher for GH¢2,536.00 being refund of air ticket for narcotics meeting in Priar, Cape Verde was acquitted with only a photocopy of the invoice. To prevent duplication of the payment, we recommended that management should make available the original copy of invoice and receipt for our examination.

101. Five officers who resigned between August and November 2008 failed to give three months notice or pay one month’s salary in lieu of notice contrary to NACOB’s service conditions. We also noted that two of the affected officers were paid unearned salaries of GH¢873.68 while one failed to settle his indebtedness of GH¢600.00 before leaving. We recommended that, management should recover the one month salary in lieu of notice from the five separated staff, while the unearned salary of GH¢873.68 enjoyed by the two ex-officers and indebtedness of GH¢600.00 due from another should be recovered accordingly.

OTHER AGENCIES

NATIONAL COMMISSION ON CIVIC EDUCATION

102. Due to laxity in supervision, fuel coupons totalling GH¢37,619.20 issued to drivers were not recorded in the respective vehicle log books contrary to Chapter 1604 of Stores Regulations



1984. Management should account for the fuel coupons of GH¢37,619.20 and also put proper control mechanism in place to ensure that fuel coupons issued to drivers are properly accounted for.

PART IIIDETAILS OF FINDINGS AND RECOMMENDATIONS

MINISTRY OF ENERGY


Introduction103. This report relates to the audited accounts of National Petroleum Authority (NPA) for the year ended 31 December 2007.

Operational Results104. The Authority’s operations for the year under review ended with a surplus of GH¢55,762 compared with the 2006 surplus of GH¢77,900, a shortfall of 24.8%. Performance indicators are shown in table 1:

Table1: Income statement for 2007 2007

GH¢’0002006

GH¢’000%

ChangeAuthority’s Income 1,353,244 1,140,373 18.67Administrative Expenses 1,297,482 1,062,473 22.12Surplus / (Deficit) 55,762 77,900 (28.42)

105. Total Income went up by 18.67% as a result of increases in License Fees from GH¢595,865 in 2006 to GH¢1,120,711 in 2007, representing an 88.0% increase and Import Permit from GH¢15,500 in 2006 to GH¢112,160 in 2007, a rise of 623.61%.

106. Total Expenditure for the year increased by 22.12% from GH¢1,062,473 in 2006 to GH¢1,297,482. This accounted for the reduction in Income Surplus for the year. The major items, which



accounted for the increase in expenditure were Salaries and Allowances GH¢543,072 (2006:GH¢359,558), a rise of 51.04%; Monitoring and Inspection Expenses GH¢118,703 (2006:Nil), a rise of 100.0%; Advertisement, Publicity and Promotion GH¢33,301 (2006:12,262), a rise of 171.58%; Depreciation GH¢150,013 (2006:GH¢102,195), a rise of 46.79% and finally Staff Training & Seminars GH¢36,936 (2006:GH¢6,684), a rise of 452.60%.

Financial Position

107. A summary of the Authority’s financial position as at 31 December 2007 is shown in Table 2

Table 2: Balance sheet as at 31 December 2007 2007

GH¢’ 0002006

GH¢’ 000%

ChangeFixed Assets 313,955 271,082 15.82Current Assets 664,563 557,151 19.28Current Liabilities 284,289 189,766 49.81Net Current Assets 380,274 367,385 3.51Long-Term Liabilities 415,248 415,248 -Total Assets 278,981 223,219 24.98Current Ratio 2.3:1 2.9:1

108. Fixed Assets increased by 15.82% from GH¢271,082 in 2006 to GH¢313,955. The increase was due mainly to the acquisition of New Motor Vehicles and Office Equipment worth GH¢183,877 and GH¢2,796 respectively, and Office Furniture and Motor Bikes worth GH¢4,930 and GH¢1,283 respectively.

109. The Current Assets also increased by 19.28% from GH¢557,151 in 2006 to GH¢664,563 in 2007. The variation was due to increase in amount due from Unified Petroleum Fund from GH¢142,452 in 2006 to GH¢323,411 representing 127.03%, Insurance Prepayments from GH¢13,301 in 2006 to GH¢15,877 in 2007 representing 19.37% and Sundry Staff Debtors of GH¢5,788 in 2007, which was nil in 2006.



110. Current Liabilities went up by 49.81% from an amount of GH¢189,766 in 2006 to register GH¢284,289 in 2007. The increase was largely due to the significant figure accrued to Internal Revenue Service – PAYE (GH¢183,877) in 2007

111. The Authority’s liquidity position of 2.3:1 in 2007(2006:2.9:1) showed its ability to pay its short-term debt when they are due.

112. Total Assets of the Authority, however, grew from GH¢223,219 in 2006 to GH¢278,981, a rise of 24.98%.

MANAGEMENT ISSUES

Accountable imprest of GH¢5,672.65 not retired.113. National Petroleum Authority advanced cash to its personnel to be used for certain transactions on behalf of the Authority, which should be retired immediately after the activity. However as at the time of audit, the total amount of GH¢ 5,672.65 had not been retired or accounted for as detailed in the table below.

Name Amount(GH¢)

Designation

Frank Arthur 137.18 OfficerDan Amoah 1,391.86 OfficerEmmanuel Mensah 742.33 OfficerMike Gizo 2,319.45 BOD MemberBen Agyare 37.18 OfficerLinda Asare 717.55 OfficerAlpha O. Welbeck 327.10 OfficerTotal 5,672.65

114. We attributed the lapse to poor controls in the imprest management system.

115. Consequently we could not authenticate whether the above stated amount was used in the interest of the Authority.



116. We recommended that the affected personnel should be made to retire the imprest immediately, or be treated as personal advances and deducted from their wages and salaries.


Introduction117. This report relates to the audited accounts of National Petroleum Authority (NPA) for the year ended 31 December 2008.

Operational Results118. The Authority’s Income Surplus for the year 2008 was GH¢58,972 as against GH¢55,765 recorded in the year 2007, a rise of 5.75%. Performance indicators are shown in Table 3:

Table 3:Income Statement for 2008 2008GH¢

2007GH¢

% Change

Authority’s Income 1,710,528 1,353,244 26.40Other IncomeExchange Gain 18,932 - -Total Income 1,729,460 1,353,244 27.80Less ExpenditureAdministrative Expenses 1,670,488 1,297,479 30.56Surplus / (Deficit) 58,972 55,765 5.75

119. Total Income went up by 27.80% as a result of introduction of Service Charges, Ex-Refinery Differentials and Other Revenue –National Petroleum Tender Board into the Revenue System, which realised GH¢200,279, GH¢131,094 and GH¢172,695 respectively for the year under review.

120. Total Expenditure for the year also increased by 30.56% from GH¢1,297,479 in 2007 to GH¢1,670,488 in 2008. The major items which accounted for the increase were Salaries & Allowances GH¢795,622 (2007: GH¢543,070), a rise of 46.50%; Staff Training and Seminars GH¢109,086 (2007: GH¢36,936), a rise of 195.34%;



Introduction of Entertainment & Refreshment and Awards & Renewals Expenses which accounted for GH¢10,641 and GH¢10,653 respectively in the year under review.

Financial PositionBalance sheet as at 31 December 2008 is shown in Table 4

Table 4: Assets and liabilities as at 2008 2008GH¢

2007GH¢

% Change

Fixed Assets 185,353 313,955 (41.0)Current Assets 631,576 664,563 (5.0)Current Liabilities 78,974 284,289 (72.2)Net Current Assets 552,602 380,274 45.3Long-Term Liabilities

400,000 415,248 (3.7)

Total Assets 337,956 278,980 21.1Current Ratio 8.0:1 2.3:1

121. The Fixed Assets of the Authority decreased from GH¢313,955 in 2007 to GH¢185,353 in 2008, showing a 41.0% reduction. This resulted from depreciation charge for the year under review.

122. Current Assets however declined slightly by 5.0% from GH¢664,563 in 2007 to GH¢631,576 in 2008. The reduction in Cash and Bank Balances of 65.1% from GH¢319,487 in 2007 to GH¢111,625 in 2008 accounted for the overall decline.

123. Current Liabilities also reduced from GH¢284,289 in 2007 to GH¢78,974 in 2008, a fall of 72.2%. The fall was due to the payment of a debt of GH¢183,877 owed to Toyota Ghana Limited in the course of the year.

124. Total Assets rose from GH¢278,980 in 2007 to GH¢337,956 representing an increase of 21.1%.



125. The Authority’s liquidity position as indicated by its current ratio of 8.0:1 (2007:2.3:1) showed the ability of the Authority to meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Bulk Oil Storage Transportation (BOST) loan

126. The Authority has in its books, an amount of GH¢400,000 owed to Bulk Oil Storage Transportation since 2006. We however noted that, there was no documentation or any loan agreement stipulating the terms and conditions of the loan which would give us the information as to whether the loan attracts any interest or not and when the loan is to be repaid by the Authority. Lack of information on the loan has compelled us to record the loan at its cost.

127. We recommended that the Authority should liaise with the Bulk Oil Storage Transportation to draw up an agreement to cover the loan contracted.

Unretired imprest: GH¢10,373.97

128. National Petroleum Authority advanced funds to its personnel to undertake certain activities on behalf of the Authority.

129. As at the time of audit, certain officials had not retired their imprest due as far back as March 2007, meanwhile additional imprest was granted to the same officials which had also not been retired as at 31/12/08. The table gives the details:

Name Outstanding Amt. [GH¢]

Due Date for Retirement

Addnal Imprest [GH¢]

Total[GH¢]

Dan Amoah 1,391.86 20/3/07 3,000.00 4,391.86Emmanuel Mensah

742.33 20/4/07 - 742.33

Frank Arthur 137.18 10/10/07 65.60 202.78Mike Gizo 2,319.45 30/8/07 2,000.00 4,319.45Linda Asare 717.55 30/6/07 - 717.55Total 10,373.97



130. We attributed the anomaly to the failure of management to put in place measures which would ensure prompt retirement of imprest.

131. As the practice might create avenue for misappropriation of the Authority’s fund, we recommended that management should institute mechanisms which would ensure the prompt retirement of imprest. We further advised that previous imprest should be retired before new ones are given. We also recommended that the affected officials should immediately retire their respective imprest, otherwise the amount should be treated as personal advances and deducted from their wages and salaries.

VOLTA RIVER AUTHORITY (VRA)

Introduction132. This report relates to the audited accounts of Volta River Authority (VRA) for the financial year ended 31 December 2008.

Operational Results

Power Production

133. The Total Power Generated from both Hydro and Thermal Sources during the year 2008 were 8,173 GWh (2007: 6,704GWh). Generation from Hydro Sources was 6,191 GWh in 2008 compared to 3,727 GWh in 2007 while Thermal Generation was 1,982 GWh (2007: 2,977 GWh). This was supplemented by purchases from Compagnie Ivorienne d’Electricite (CIE) of La Cote D’Ivoire of 275 GWh (2007: 435 GWh). Transmission Losses were 298 GWh or 3.5% (2007: 230 GWh or 3.5%). Distribution Losses were 99 GWh representing 18.8% of power distributed by NED (2007: 98 GWh or 20.2%). Generation and Transmission Substation use was 33GWh (2007: 47 GWh). Electricity sold to customers was 8,012 GWh (2007: 6,762 GWh).



134. The revenue from Sale of Electricity increase by GH¢233,788,000 (61.1%) to GH¢616,591,000 compared to the previous year’s sales of GH¢382,803,000. This was due to two main factors being increase in electricity available for sale and a 40% upward adjustment of the Bulk Supply tariff in November 1, 2007 which impacted more on the 2008 revenue.

135. The other income rose by 421.6% to GH¢63,613,000 from the previous year’s figure of GH¢12,195,000. The increase was mainly due to profit on the sale of Fixed Assets. Presented in Table 5 is a summarized income statement

Table 5: Income Statement for 2008 Item 2008

GH¢’0002007

GH¢’000%

ChangeIncomeSale of Electricity 616,591 382,803 61.1Other Income 63,613 12,195 421.6Total Income 680,204 394,998 72.2ExpenditureOperating Costs 701,827 626,548 12.0Depreciation 60,896 66,044 (7.8)Exchange Loss 1,452 7,105 (79.6)Total Expenditure 764,175 699,697 9.2Operating Loss (83,971) (304,699) (72.4)Government Assistance 264,032 307,383 (14.1)Exchange Fluctuation Loss on Foreign Debt

(34,003) (20,943) 62.4

Interest and Commitment Charges (23,292) (23,519) 1.0Net Profit / (Loss) 122,766 (41,778) (393.9)

136. The Operating Cost for the year under review was GH¢701,827,000 (2007: GH¢626,548,000), an increase of 12.0% or GH¢75,279,000. The increase can be attributed to a rise in cost of fuel for thermal generation as a result of greater emphasis on thermal generation and purchase of electricity. The operating loss improved by 72.4% from a deficit of GH¢304,699,000 in 2007 to a deficit of GH¢83,971,000 in 2008.



137. The Exchange Fluctuation Loss on Foreign Debt went up by 62.4% from GH¢20,943,000 in 2007 to GH¢34,003,000 in 2008. This was as a result of the depreciation of the value of the Ghana Cedi (GH¢) against the US Dollar (US$) and other foreign currencies in which loans were held. The Government Assistance during the year decreased by 14.1% from GH¢307,383,000 in 2007 to GH¢264,032,000 in 2008.

138. The year ended with a Net Profit of GH¢122,766 as against a deficit of GH¢41,778 in the previous year. This was transferred to the Income Surplus Account.

Financial position

Shown in Table 6 is the financial position of the Authority as at 2008

Table 6: Balance sheet as at 31 December 2008 Item 2008

GH¢’0002007

GH¢’000%

ChangeNon-Current Assets 2,013,164 1,947,559 3.4Current Assets 623,626 328,606 89.8Current Liabilities 402,177 290,323 38.5Net Current Assets 221,449 38,283 478.5Non-Current Liabilities 289,583 309,884 (6.6)Net Assets 1,945,030 1,675,958 16.1Current Ratio 1.55:1 1.13:1

139. Non-Current Assets rose from GH¢1,947,559,000 in 2007 to GH¢2,013,164,000 in 2008 to record an increase of 3.4%.

140. Current Assets also rose from GH¢328,606,000 in 2007 to GH¢623,626,000 in 2008 to register an increase of 89.8%. The significant rise was mainly due to an increase in Debtors, Short-Term Investment and Cash and Bank Balances.

141. Total Current Liabilities which stood at GH¢290,323,000 in 2007 increased by 38.5% to GH¢402,177,000 in the year under



review. The increase was attributable to the increase in short-term borrowings.

142. Net Current Assets registered an increase of 478.5% to GH¢221,449,000 during the year under review as compared to GH¢38,283,000 in the previous year.

143. Net Assets of the Authority grew marginally by 16.1% from GH¢1,675,958,000 in 2007 to GH¢1,945,030,000 in 2008.

144. The liquidity position of the Authority as measured by the current ratio of 1.55:1 (2007:1.13:1) showed an unhealthy position and the Authority might not be able to meet its short-term obligations as and when they fall due.

VOLTA RIVER AUTHORITY (VRA)IDA CREDIT NO. 4092-GH AND 4213-GH

RE: 330KV WAPP COASTAL TRANSMISSION BACKBONE PROJECT

Introduction145. This report is on the audited accounts of IDA Credit Number 4092-GH and 4213-GH, RE: 330KV WAPP Coastal Transmission Backbone Project of the Volta River Authority (VRA) for the financial year ended 31 December 2008. Table 7 shows the performance indicators:

Operational resultsTable 7:Income statement for 2008 Item 2008

US$2007US$

% Change

ResourcesLoan Draw-Downs 12,825,969 4,724,148 171.5VRA’s Contribution 4,532,277 333,793 1,257.8Total Resources 17,358,246 5,057,941 243.2ExpenditureExpenses 17,358,246 3,057,941 467.6



Transfer to Open IDA Special Account

- 2,000,000

Total Expenditure 17,358,246 5,057,941 243.2

146. The Loan Draw–Downs together with VRA’s contribution for the year totalling US$17,358,246 were fully utilised as compared to a total expenditure of US$3,057,941 in 2007.

Financial PositionShown in Table 8 is the financial position of the Project for 2008


US$2007US$

% Change

Long-Term Assets 21,269,334 3,948,169 438.7Current Assets 1,170,500 1,121,066 4.4Total 22,439,834 5,069,235 342.7Financed by:Long-Term Loans 17,550,117 4,724,147 271.5VRA’s Contribution 4,866,070 333,794 1,357.8Net Amount Earned on IDA 4092 Sp. A/c

23,647 11,294 109.4

Total 22,439,834 5,069,235 342.7

147. Long-Term Assets for the period under review was US$21,269,334 (2007: US$3,948,169), an increase of 438.7%. The significant increase in Goods, Supply and Installation, Consultancy Services and many other expenditures largely accounted for the rise.

148. Current Assets, which is IDA 4092 Special Account however, increased marginally by 4.4% from US$1,121,066 in 2007 to US$1,170,500 in 2008.

149. Total Assets of the Project however, grew from US$5,069,235in 2007 to US$22,439,834 in 2008, a rise of 342.7%. The rise was as a result of the increase in Long-Term Assets.

150. The Project was financed by Long-Term Loans of US$17,550,117 (2007: US$4,724,147), an increase of 271.5%; VRA’s



Contribution of US$4,866,070 (2007: US$333,794), a rise of 1,357.8%, together with a Net Amount earned on IDA 4092 Special Account of US$23,647 (2007: US$11,294), an increase of 109.4%.

MANAGEMENT ISSUES

Reimbursement of IDA special bank account by Volta River Authority – US$13,514

151. The Volta River Authority owed an amount of US$13,514 to the IDA Special Bank Account attached to IDA Credit No. 4092 as at 31 December 2008. The indebtedness arose as a result of payment of total invoice amount of US$135,140 to Synexus Global Hatch Limited from the IDA Special Account instead of 90% of the invoice amount being US$121,626. The imprest available to the IDA Special Account therefore fell short by US$13,514.

152. We recommended that, the outstanding amount of US$13,514 be refunded to the IDA Special Bank Account by the Volta River Authority.

UNIFIED PETROLEUM PRICE FUNDIntroduction153. This report covers the audited accounts of Unified Petroleum Price Fund for the financial year ended 31 December 2007.

Operational Results154. The Funds operations for the year ended a deficit of GH¢4,886,295, compared with a deficit of GH¢870,419 for 2006, an increase of 661.4%. Provided in Table 9 are the performance indicators

Table 9: Income statement for 2007 2007GH¢

2006GH¢

% Change

Fund Income 63,623,618 51,838,861 22.7Freight Charges 68,263,105 52,582,076 29.8



Net Fund Income (4,639,487) (743,215) (524.2)Other Income 9,036 91,872 (90.2)Net Income (4,630,451) (651,343) 610.9Administrative Expenses 255,844 219,076 16.8Surplus / (Deficit) (4,886,295) (870,419) (661.4)

155. Fund Income increased by 22.7% from GH¢51,838,861 in 2006 to GH¢63,623,618 in 2007.

156. Freight Charges also went up by 29.8% from GH¢52,582,076 in 2006 to GH¢68,263,105. The increase was as a result of the introduction of verification and inspection charges into the system.

157. Other Income of GH¢9,036) was recorded for the year, showing a decrease of 90.2% over the 2006 figure of GH¢91,872. The decrease was due to nil interest on investments for the year under review and 66.9% reduction on the interest on Call Account from GH¢27,300 in 2006 to GH¢9,036.

158. Administrative Expenses increased by 16.8% to GH¢255,844 (2006: GH¢219,076). The increase was mainly due to Salaries & Allowances which went up by 45.7% to GH¢56,606 (2006: GH¢38,853) and Board Members Allowances which rose by 424.9% to GH¢50,437 (2006: GH¢9,608).

Financial PositionTable 10 shows the balance sheet position as at 31 December 2007

Table 10: Assets and liabilities as at 2007 2007GH¢

2006GH¢

% Change

Fixed Assets 1,449 5,185 (72.1)Current Assets 3,531,393 1,194,338 195.7Current Liabilities 13,424,323 6,204,710 116.4Net Current Assets (9,892,930) (5,010,372) 97.4Net Assets (9,891,481) (5,005,187) 97.6



159. Fixed Assets decreased from GH¢5,185 in 2006 to GH¢1,449 in 2007, a reduction of 72.1%. The decrease was due to depreciation charged for the year under review.

160. Current Assets however, increased by 195.7% from GH¢1,194,338 in 2006 to GH¢3,531,393 in 2007. This was largely due to its 201.7% increase in Trade Debtors from GH¢1,112,696 in 2006 to GH¢3,356,534 in 2007.

161. Current Liabilities also increased by 116.4% to GH¢13,424,323 (2006: GH¢6,204,710) due to increase in trade creditors.

162. At the end of 2007, the net Current Assets stood at a deficit of GH¢9,892,930 compared with a deficit of GH¢5,010,372, an increase in deficit of 97.4%.

163. The Total Net Assets of the Fund, which stood at a deficit of GH¢5,005,187 in 2006 worsened to a deficit of GH¢9,891,481 at the end of 2007.

164. The liquidity position of the Fund showed a current ratio of 0.3:1 as compared to the previous year’s ratio of 0.2:1. This showed that the Price Fund may not be able to discharge its short-term obligations as they fall due.

MANAGEMENT ISSUES

Oil Marketing Company (OMC’s) account balances165. The OMC’s monthly returns submitted to U.P.P.F were forwarded to Accounts Department to enable them update the OMC’s Ledgers. We noted that, on many instances, some of these returns were subsequently amended by U.P.P.F but copies were not sent to the Accounts Department. This resulted in discrepancies between OMC’s balances with U.P.P.F and the accounts.



OMC’s OMC’s Balances per U.P.P.F

OMC’s Balances per Accounts Department

Agapet 188,088.00 261,704.00Allied 487,819.00 583,419.00Goil 2,335,454.00 2,239,374.00Motohaus 218,458.00 295,006.00Nasona (639,267.00) (433,019.00)Oando (1,063,203.00) (2,031,824.00)Kaysens 161,903.00 (52,171.00)Universal 45,519.00 (28,179.00)Sonnidom (45,889.00) 92,777.00)

166. As this would not enhance decision making, we recommended that U.P.P.F should reconcile the O.M.C’s records with Accounts Department every quarter to ensure accuracy of figures.

Oil Marketing Companies and Tema Oil Refinery lifting returns167. We observed that, there were differences in total monthly liftings of Petroleum Products (Litres) by the Oil Marketing Companies as per Sales Statement from the Monitoring and Control Department of Tema Oil Refinery (TOR) and the monthly returns submitted to U.P.P.F by the Oil Marketing Companies. Below are some of these differences between the two returns for the months of February, October and December.

Name of Company

Months Products Litres per T.O.R

Returns

Litres per O.M.C’s Returns

Differences

Agapet December PMS & AGO 2,745,000 2,907,000 162,000

Galaxy ^ ^ ^ 2,369,250 2,504,250 135,000

Glory Oil ^ ^ ^ 3,799,000 3,907,000 108,000

Goil ^ ^ ^ 17,520,700 21,776,200 4,255,500

Oando ^ ^ ^ 1,957,500 2,200,500 243,000

So Energy ^ ^ ^ 2,323,350 2,552,850 229,500

Top Oil ^ ^ ^ 2,088,450 2,094,300 5,850

Total Petrol ^ ^ ^ 25,253,800 31,184,800 5,931,000

Goil October PMS & AGO 22,675,800 24,622,800 1,947,000



Goil ^ L.P.G 1,229,419 1,342,657 113,238

Total Petrol ^ PMS & AGO 30,182,250 34,659,600 4,477,350Oando ^ ^ ^ 2,238,250 2,306,250 68,000Top Oil ^ L.P.G 110,650 149,280 38,630

Allied ^ PMS & AGO 8,606,100 8,673,600 67,500

Glory ^ ^ ^ 3,527,500 3,554,500 27,000

Total Petrol February PMS & AGO 34,313,450 34,485,350 171,900

Oando ^ ^ ^ 4,427,800 4,832,800 405,000

Engen ^ ^ ^ 3,264,950 3,291,950 27,000

Excel ^ L.P.G 92,230 154,470 62,240

Excel ^ PMS & AGO 3,062,000 3,089,000 27,000

168. As the returns sent by the O.M.C’s to U.P.P.F are a financial claim against the Fund we advised that the returns should be thoroughly audited by the personnel of U.P.P.F to prevent losses.

UNIFIED PETROLEUM PRICE FUNDIntroduction169. This report covers the audited accounts of Unified Petroleum Price Fund for the financial year ended 31 December 2008.

Operational Results170. The Fund registered an excess income over expenditure of GH¢26,160,942 for the financial year as against a deficit of GH¢4,886,295 in 2007, representing an increase of 635.4%. Provided in Table 11 are the details of the performance.

Table 11: Income Statement for 2008 2008GH¢

2007GH¢

% Change

Fund Income 98,181,354 63,623,618 54.3Freight Charges 71,946,379 68,263,105 5.4Net Fund Income 26,234,975 (4,639,487) 665.5Other Income 454,812 9,036 4,933.3Total Income 26,689,786 (4,630,451) 676.4



Administrative Expenses 528,845 255,844 106.7Surplus / (Deficit) 26,160,942 (4,886,295) 635.4

171. The Fund’s Income increased by 54.3% to GH¢98,181,354 (2007: GH¢63,623,618). The increment in the Fund’s Income was due to a significant rise in UPPF’s Main Product Returns which registered a 55.4% rise from GH¢62,874,593 in 2007 to GH¢97,721,787.

172. The freight charges also increased marginally by 5.4% to GH¢71,946,379 (GH¢68,263,105 in 2007).

173. Other Income of GH¢454,812 (2007: GH¢9,036) was recorded showing a significant rise of 4,933.3%. This comprised mainly of Interest on Investments of GH¢344,141(2007: NIL); Interest on Call Account of GH¢110,308 (2007: GH¢9,036) and Exchange Adjustments of GH¢363 (2007: NIL).

174. Administrative Expenses increased by 106.7% to GH¢528,845 (2007: GH¢255,844). Notable among the causes of this increase was the expenditure on Salaries & Allowances which increased by 75.6% from GH¢56,606 in 2007 to GH¢99,394 at the end of 2008; Committee Allowances GH¢60,132 (2007: NIL), an increase of 202.7%; and Subscriptions of GH¢67,855 (2007: GH¢3,437), an increase of 1,874.3%.

Financial position

A summarised balance sheet of the Fund as at 31 December 2008 is provided in Table 12

Table 12: Financial position as at 31 December 2008 2008 (GH¢) 2007 (GH¢) % Change

Fixed Assets 3,499,010 1,449 241,377.6Current Assets 14,382,386 3,531,393 307.3Current Liabilities 1,611,936 13,424,323 (88.0)Net Current Assets 12,770,450 (9,892,930) 229.1Net Assets 16,269,460 (9,891,481) 264.5Current Ratio 8.9:1 0.3:1



175. The Non-Current Assets increased significantly by 241,377.6% from GH¢1,449 in 2007 to GH¢3,499,010 in 2008. The increase was mainly due to investments in 91 days treasury bills and Call Accounts held in three financial institutions totalling GH¢3,469,297, which constituted about 99.2% of total funds employed.

176. The Current Assets also increased by 307.3% from GH¢3,531,393 in 2007 to GH¢14,382,386 in 2008. The increase was partly due to a substantial increase in cash at bank from GH¢174,859 in 2007 to GH¢3,070,465 in 2008.

177. Current Liabilities decreased by 88% to an amount of GH¢1,611,936 registered in 2008 as against GH¢13,424,323 in 2007. The reduction was mainly due to the payment of GH¢12,218,494 owed to the Oil Marketing Companies during the year.

178. The Total Net Assets of the Fund grew from a negative figure of GH¢9,891,481 in 2007 to a surplus of GH¢16,269,461 in 2008, a rise of 264.5%. This rise was mainly as a result of the surplus realised during the year under review.

179. There was an improvement in the Fund’s liquidity position as portrayed by its current ratio of 8.9:1 (2007:0.3:1), which indicates its ability to discharge its short-term debts as and when they fall due.

MANAGEMENT ISSUESOMC and TOR lifting returns

180. We noted discrepancies between liftings per Tema Oil Refinery returns and that of the Oil Marketing Companies. Below are some of the inefficiencies

Name of OMC

Month Name of Product

Quantity per TOR

Lift

Quantity per OMC Returns

Difference

Goil January PMS & AGO

21,984,600 24,871,100 (2,886,500)



Shell ^ ^ ^ 20,094,800 19,503,500 591,300Total ^ ^ ^ 25,492,200 29,972,200 (4,480,000)Goil November ^ ^ 16,703,600 26,021,100 (9,317,500)Goil ^ LPG 1,592,268 1,393,849 198,419Shell December PMS &

AGO18,103,100 19,035,000 (931,900)

Total January ^ ^ 18,671,200 28,485,650 (9,814,450)Jokoena June LPG 382,010 358,990 23,020Agapet June PMS &

AGO1,630,500 2,625,000 (994,500)

181. We recommended that the TOR report on OMC’s liftings on monthly basis should be reconciled with that of the monthly returns submitted by the Oil Marketing Companies and any discrepancies identified should be investigated for the appropriate redress, in order to curtail losses.

Under recoveries -GH¢4,720,000

182. We observed that in December 2008, an amount of GH¢4,720,000 from the excess fund was used to settle under recoveries owed to two Oil Trading Companies namely Bulkship Trade and Cirrus Energy, whose activities did not form part of the Petroleum Downstream industry.

183. We however did not cite any written document from the Minister requesting the U.P.P.F to pay such under recoveries from its excess fund nor were we given a written document from N.P.A requesting for a loan from UPPF for the payment of under recoveries.

184. The practice contravened Section 73(2) of the National Petroleum Act 2005, Act 691; which states that, “the UPPF Management Committee may after defraying expenses of the fund and with the approval of the Board in consultation with the Minister direct in writing that any part of any excess monies located in the bank account for the fund to be utilised in the execution of a designated project related to the Petroleum Downstream Industry.” The anomaly could negatively impact on the operations of the excess fund.



185. We recommended that UPPF should adhere to the relevant provisions of Act 691 and accordingly ensure that the under recoveries are refunded.

Kero fund – Overpayment of GH¢100,000.00

186. We observed that as at 31 December 2008, UPPF realised an amount of GH¢1,499,000 on the Kero fund, of which no liability was created in its books.

187. Due to the failure of UPPF to keep proper records on the Kero fund, an amount of GH¢1,599,000 was paid to the Ministry of Energy during the year under review, resulting in an overpayment of GH¢100,000.00.

188. We recommended that Management should set up a separate account and books for the Kero Fund into which the transactions between Oil Marketing Companies and UPPF on behalf of the Kero Fund would be realized and recorded respectively so as to facilitate easy tracking and verification. We also recommended the refund of the overpaid sum.

BULK OIL STORAGE AND TRANSPORTATION COMPANY LIMITED

Introduction189. This report relates to the audited accounts of Bulk Oil Storage and Transportation Company Limited for the year ended 31 December 2006.Table 13 provides the performance indicators.

Operational results

Table 13:Income statement for 2006 2006

¢’ Billion2005

¢’ Billion%

ChangeTurnover 1,055.10 793.67 32.9Cost of Sales (1,267.24) (849.21) 49.2Gross Loss (212.14) (55.54) 282.0



Other Income 424.16 194.67 117.9Finance Charges (31.70) (11.66) 171.9Selling, General & Administrative Expenses

(97.56) (43.22) 125.7

Net Profit for the year 82.76 84.25 (1.8)

190. Turnover for the year under review increased by 32.9% from ¢793.67 billion in 2005 to ¢1,055.10 billion in 2006. Cost of Sales also increased by 49.2% from ¢849.21 billion in 2006 to ¢1,267.24 billion, resulting in a gross loss of ¢212.14 billion in 2006 compared with a loss of ¢55.54 billion in 2005.

191. Other Income comprising mainly of BOST margin, investment income, fuel import under recovery, haulage expenditure refund and product gain increased by 117.9% to ¢424.16 billion (2005:194.67 billion) totaled ¢424.16 billion in 2006 as compared to ¢194.67 billionin 2005, an increase of 117.9%.

192. Finance charges and Selling, General and Administrative Expenses increased by 171.9% and 125.7% respectively.

193. The year’s operations ended with a Net Profit of ¢82.76 billion, and this fell short of the 2005 figure of ¢84.25 billion by 1.8%.

Financial PositionShown in Table 14 is the financial position as at 2006

Table 14: Balance sheet as at 31December 2006 2006

¢’ Billion2005

¢’ Billion%

ChangeNon-Current Assets 691.19 427.60 61.6Current Assets 1,515.99 673.65 125.0Current Liabilities 1,303.44 423.91 207.5Net Current Assets 212.56 249.73 (14.9)Net Assets 903.75 677.34 33.4Current Ratio 1.2:1 1.6:1



194. Fixed Assets increased by 61.6% from ¢427.60 billion in 2005 to ¢691.19 billion in 2006 due to additions within the year.

195. Current Assets also increased by 125.0% from ¢673.65 billion in 2005 to ¢1,516.00 billion in 2006 due to significant increases in inventories (107.50%), marketable securities (648.8%) and Cash and Bank balances (677.4%).

196. Current Liabilities also increased by 33.4% from ¢677.34 billion in 2005 to ¢903.75 billion in 2006 as a result of significant increases in trade accounts payable and other payables.

MANAGEMENT ISSUES

No due diligence on building structures before purchase

197. We noted during our audit that, the purchase of a building structure at Savelugu amounting to ¢279,000,000 (GH¢27,900) was not supported by an evaluation report. We however, sighted the cheque payment voucher no. 0006838 dated 4 November 2005 with a supporting journal numbered 0977.

198. This implied a risk of the company buying an overpriced property in the absence of an evaluation by a qualified valuer before the purchase was effected.

199. We recommended that an evaluation report should be prepared on the building structure to appropriately establish the market value of the structure. In this way, Management could be driving towards obtaining value for money for the transaction.



BULK OIL STORAGE AND TRANSPORTATION COMPANY LIMITED

Introduction200. This report relates to the audited accounts of Bulk Oil Storage and Transportation Company Limited for the year ended 31 December 2007. Table 15 provides the performance indicators.

Operational resultsTable 15 : Income statement for 2007

2007 (GH¢) 2006 (GH¢) % ChangeTurnover 277,714,872 105,510,227 163.2Cost of Sales (257,105,881) (126,723,895) 102.9Gross Profit/(Loss) 20,608,991 (21,213,668) 197.1Other Income 44,984,285 42,416,253 6.1Finance Charges (16,084,774) (3,169,950) 407.4Selling, General & Administrative Expenses

(40,028,020) (9,756,369) 310.3

Net Profit for the year 9,480,482 8,276,266 14.6

201. Turnover for the period increased by 163.2% from GH¢105,510,227 in 2006 to GH¢277,714,872 in 2007.

202. Cost of Sales also increased by 102.9% from GH¢126,723,895 in 2006 to GH¢257,105,881 in 2007. The company thus registered a Gross Profit of GH¢20,608,991 at the end of the year compared with a Gross Loss of GH¢21,213,668 in 2006.

203. Other Income for the year increased by 6.1% over that of 2006, while Finance Charges and Selling, General and Administrative Expenses increased by 407.4% and 310.3% respectively.

204. The company’s operations for the year ended with a Net Profit of GH¢9,480,482, an increase of 14.6% over the 2006 profit of GH¢8,276,266.



Financial position

A summarised balance sheet as at 31 December 2007 is provided in

Table 16.

Table 16:Financial position as at 2007 2007GH¢

2006GH¢

% Change

Non-Current Assets 120,791,667 69,119,314 74.8Current Assets 188,289,022 151,599,028 24.2Current Liabilities 135,057,808 130,343,505 3.6Net Current Assets 53,231,214 21,255,523 150.4Net Assets 174,022,881 90,374,837 92.6Current Ratio 1.4:1 1.2:1

205. Non-Current Assets rose from GH¢69,119,314 in 2006 to GH¢120,791,667 in 2007 representing a 74.8% increase. This was due to additions to Fixed Assets during the year.

206. Current Assets rose by 24.2% from GH¢151,599,028 in 2006 to GH¢188,289,022 in 2007. This was due mainly to an 851.4% increase in Accounts Receivable and Prepayments and 5.5% increase in Cash and Bank balances.

207. Current Liabilities registered a marginal increase of 3.6% from GH¢130,343,505 in 2006 to GH¢135,057,808 in 2007. These increases resulted in a 92.6% rise in Net Assets from GH¢90,374,837 in 2006 to GH¢174,022,881 in 2007 showing a better financial position in this year than the year 2006.

PUBLIC UTILITIES REGULATORY COMMISSION

Introduction208. This report relates to the audited accounts of Public Utilities Regulatory Commission for the year ended 31 December 2008. Shown in Table 17 are the performance indicators.



Operational results

Table 17: Income statement for 2008 Item 2008

GH¢2007GH¢

% Change

IncomeGovernment Subvention 1,189,970 1,003,212 18.6HIPC Fund 142,548 25,000 470.2Grant from Donors 723,854 783,925 (7.7)Other Income 277,337 132,738 108.9Total Income 2,333,709 1,944,875 20.0ExpenditurePersonnel Costs 551,445 443,004 24.5Administrative Costs 797,758 567,062 40.7Service Costs 1,018,177 865,516 17.6Total Expenditure 2,367,380 1,875,582 26.2Surplus / (Deficit) (33,671) (69,293) (51.4)

209. Total Income increased by 20.0% from GH¢1,944,875 in 2007 to GH¢2,333,709 in 2008. This was mainly due to 470.2% increase in HIPC Fund, 108.9% increase in Other Income and 18.6% increase in Government Subvention.

210. Total Expenditure for the year rose to GH¢2,367,380 from GH¢1,875,582 in 2007, registering a 26.2% increase. Administrative Costs, which witnessed a rise of 40.7% due to expenditure rise in electricity and water contributed significantly to the increase in total expenditure.

211. The Commission’s operations for the year ended with a deficit of GH¢33,671 compared with the deficit of GH¢69,293 for 2007, representing an improvement in the deficit position of the Commission.

Financial PositionTable 18 provides the Commission’s financial position as at 2008




GH¢2007GH¢

% Change

Fixed Assets 170,838 175,417 (2.6)Current Assets 171,528 86,060 99.3Current Liabilities 144,787 30,227 379.0Net Current Assets 26,741 55,833 (52.1)Net Assets 197,579 231,250 (14.6)Current Ratio 1.2:1 2.8:1

212. Fixed Assets decreased slightly to GH¢170,838 in 2008 (2007: GH¢175,417). This was as a result of Depreciation Charges and Disposal of Computers.

213. A significant increase in Cash and Bank balances of GH¢106,388 led to the increase in Current Assets to a total of GH¢171,528 in 2008 (2007: GH¢86,060), registering a 99.3% increase.

214. Current Liabilities recorded a 379% increase to GH¢144,787 in 2008 from GH¢30,227 in 2007. This worsened the liquidity position to 1.2:1 (2007: 2.8:1).

ENERGY COMMISSION

Introduction215. This report relates to the audited accounts of Energy Commission for the year ended 31 December 2008.

Operational results216. Total Income for the year under review amounted to GH¢2,495,571 as against GH¢2,788,078 recorded in 2007, a decrease of GH¢292,507 or 10.5%. The decrease was due mainly to a 10.0% reduction in the Revenue Grant for the year and 14.6% reduction in Other Income. Presented in Table 19 are the performance indicators for the period.




GH¢2007GH¢

% Change

IncomeRevenue Grants 2,248,165 2,498,455 (10.0)Other Income 247,406 289,623 (14.6)Total Income 2,495,571 2,788,078 (10.5)ExpenditurePersonnel Emoluments 775,199 639,604 21.2Administrative & General Expenses

1,112,180 982,855 13.2

Service Activity Expenses 815,928 1,025,417 (20.4)Total Expenditure 2,703,307 2,647,876 2.1Surplus / (Deficit) (207,736) 140,202 (248.2)

217. Total Expenditure for the year 2008 amounted to GH¢2,703,307 as compared to the previous year’s figure of GH¢2,647,876, thereby reflecting a marginal increase of GH¢55,431 or 2.1%.

218. The Commission’s operations for 2008 ended with a deficit of GH¢207,736 as against a surplus of GH¢140,202 recorded in 2007. The excess of expenditure over income in 2008 was mainly due to the decrease in Total Revenue by 10.5% coupled with a marginal increase of 2.1% in Total Expenditure.

Financial PositionTable 20 shows the balance sheet of the Commission as at 31 December 2008.


GH¢2007GH¢

% Change

Non-Current Assets 746,376 889,686 (16.1)Current Assets 265,248 273,570 (3.0)Current Liabilities 179,864 48,886 267.9Net Current Assets / Liabilities 85,384 224,684 (62.0)Net Assets 831,760 1,114,370 (25.4)Financed by:



Capital Grant 225,942 300,816 (24.9)Special Fund Account 488,330 488,330 -Accumulated Fund Account 117,488 325,224 (63.9)Total 831,760 1,114,370 (25.4)

219. Although new motor vehicles were acquired during the year, the amortisation of Deferred Expenditure in respect of the refurbishment of office premises resulted in the overall decline in Non-Current Assets by 16/1%.

220. Current Assets decreased marginally by 3.0% from GH¢273,570 in 2007 to GH¢265,248 in 2008. The decrease was as a result of a substantial drop in Accounts Receivable.

221. Current Liabilities, however, recorded an increase of GH¢130,978 or 267.9% over the previous year’s figure. The increase was due to a sharp rise in Other Credit Balances like the deposits held for National Petroleum Authority.

222. The Net Assets thus reduced by 25.4% from GH¢1,114,370 in 2007 to GH¢831,760 in 2008. The drop in Net Assets was due to reduction in Non-Current Assets and the Current Assets as well as increase in Current Liabilities.

223. The liquidity position as depicted by a Current Ratio of 1.5:1 (2007:5.6:1) showed that the Commission could partially pay its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Staff loans and advances - GH¢6,380.00224. As at 31 December 2008, Staff debtors stood at GH¢6,380.00. Included in the above figure was an amount of GH¢501.00 owed by some of the Commission’s staff who had been transferred to National Petroleum Authority and those debts could therefore not be recovered at source. The effect is that, part of the Commission’s funds would be locked up in staff debtors.



225. We recommended that, National Petroleum Authority should be contacted to assist in the recovery of the debts owed by staff who had been transferred there.

226. Management responded that, it would immediately start the recovery process to retrieve the amount from the affected staff of National Petroleum Authority.

ENERGY COMMISSION – ENERGY FUND

Introduction227. This report covers the audited financial statements of Energy Commission – Energy Fund for the year ended 31 December 2008.

Operational Results228. The Energy Fund closed the year with a negative bank balance of GH¢50,580 as against a positive balance of GH¢267,340 recorded in 2007. The indicators are presented in Table 21:


GH¢2007GH¢

% Change

ResourcesBank Balance as at 1st January 267,340 583,354 (54.2)Releases from CAGD from PetrolLevy A/c

910,152 988,482 (7.9)

Fees from Permits & Licences Issued 120,496 14,540 728.7Other Income 51,595 33,326 54.8Total Resources Available 1,349,583 1,619,702 (16.7)Less DisbursementsCapital Expenditure of Energy Commission

151,313 127,192 19.0

Support for EC’s Operating Expenditure

1,198,450 1,225,169 (2.2)

Withdrawals of Receipts from NPA 50,400 - 100.0Bank Charges 1 1Total Disbursements (1,400,163) (1,352,362) 3.5Bank Balance as at 31st December (50,580) 267,340 (118.9)



229. Total Resources decreased by 16.7% from GH¢1,619,702 in 2007 to GH¢1,349,583 in 2008. The reduction was due mainly to a drop in bank balance at the beginning of the year from GH¢583,354 in 2007 to GH¢267,340 in 2008, representing a decline of 54.2%.

230. The Fund’s overdrawn Bank balance of GH¢50,580 showed a decline of 118.9% over the previous year’s favourable balance of GH¢267,340. The overdrawn balance was due mainly to increase in Capital expenditure of the Fund, coupled with Withdrawal of receipts from NPA totalling GH¢50,400. Additionally the year under review commenced with a lower Opening Bank balance of GH¢267,340 (2007: GH¢583,354).

231. The Total Disbursements amounted to GH¢1,400,163, representing a 3.5% increase over the 2007 figure of GH¢1,352,362.

Financial PositionProvided in Table 22 is the financial position as at 2008


GH¢2007GH¢

% Change

Current Assets (50,580) 267,340 (118.9)Represented by:Energy Fund Account (50,580) 267,340 (118.9)

232. Current Assets dropped by 118.9% from GH¢267,340 in 2007 to a negative figure of GH¢50,580 in 2008. The short fall was caused by the decrease in the opening balance in the bank.

233. The Fund position at the end of the year under review stood at an overdrawn position of GH¢50,580 as against GH¢267,340 for 2007.



MANAGEMENT ISSUES

Energy fund234. The principal source of funds into the Energy Fund is the releases from the Petroleum Levy Account by the Controller and Accountant-General Department in respect of Energy Fund portion. However, Controller and Accountant-General Department released only GH¢910,152 representing 37.6% out of estimated inflow of GH¢2,421,424 for the year under review into the Fund. The non-availability of funds has crippled most of the programmed activities to be undertaken.

235. We recommended that, Management should make reliable forecast of revenue that could be raised by the Energy Fund.

236. Management responded that, the estimated inflow of GH¢2,421,424 was not based on only the levy on the petroleum products but also on estimation of revenue supposed to have been generated from bulk electricity consumed which was collectible but could not be collected due to late passing of the L.I that gives legal backing to Energy Commission.

MINISTRY OF FINANCE AND ECONOMIC PLANNING

VENTURE CAPITAL TRUST FUNDIntroduction237. This report covers the audited accounts of Venture Capital Trust Fund for the year ended 31 December 2008.

Operational results238. The details of the operations of the Fund are provided in Table 23:



Table 23: Income and Expenditure Account for 20082008GH¢

2007GH¢

%Change

IncomeInterest Income 3,069,055 2,238,910 37.1Fees - 12,000 -Economic Management & Capacity Building Project Support 118,011 - -Income 3,187,066 2,250,910 41.6ExpenditureAdministrative Expenses 1,066,325 478,329 122.9Directors Emolument:Board Fees 30,000 50,400 (40.5)Board Expenses 45,655 18,753 143.5Audit Fees 6,000 5,000 20.0Depreciation 71,326 37,881 88.3Total Expenditure 1,219,306 590,363 106.5Surplus / (Deficit) 1,967,760 1,660,547 18.5

239. Total Income of the Fund amounted to GH¢3,187,066 in 2008, representing a 41.6% increase over the 2007 figure of GH¢2,250,910. The increase was mainly due to a 37.1% increase in Interest Income.

240. Total Expenditure for the same period amounted to GH¢1,219,306 in 2008 as against GH¢590,363 in 2007, an increase of 106.5%. The increase was mainly due to 122.9% increase in Administrative Expenses. Board Expenses and Depreciation also increased by 143.5% and 88.3% respectively.

241. The year ended with a Income Surplus of GH¢1,967,760 as compared to a surplus of GH¢1,660,547 in 2007, an increase of 18.5%.

Financial PositionPresented in Table 24 is the Fund’s financial position.



Table 24: Asset and Liability for 2008 2008 GH¢

2007 GH¢

% Change

Fixed Assets 93,479 95,409 (2.0)Investments 4,241,731 2,713,083 56.3Current Assets 23,138,397 22,559,609 2.6Current Liabilities 162,965 25,219 546.2Net Current Assets 22,975,432 22,534,882 2.0Net Assets 27,310,624 25,342,882 7.8Current Ratio 141.9:1 894.5:1

242. Fixed Assets decreased by 2.0% from GH¢95,409 in 2007 to GH¢93,479 2008. The reduction was mainly due to Depreciation Charge. Investment in securities increased by 56.3% from GH¢2,713,083 in 2007 to GH¢4,241,731 in 2008. New funds totalling GH¢1,984,300 were invested in Gold Venture Capital Ltd, Sorghum Farmers and Bedrock Venture Finance Company Limited.

243. Current Assets rose marginally by 2.6% to GH¢23,138,397 in 2008 from GH¢22,559,609 in 2007.

244. Current Liabilities increased significantly by 546.2% from GH¢25,219 in 2007 to GH¢162,965 in 2008. This was due mainly to an increase in accounts payable to Ministry of Food and Agriculture and Accruals.

245. The Fund’s liquidity position was very strong and it indicated that the company could meet its short-term financial obligations as and when they fall due.

STUDENT LOAN TRUST FUND

Introduction246. This report relates to the audited accounts of Students Loan Trust Fund for the year ended 31 December 2008.



Operational Results247. Total Income for the year amounted to GH¢1,403,529 as against GH¢769,142 recorded in 2007, an increase of GH¢634,387 or 82.5%. This increase was due mainly to a 900% increase in Administrative Grant for the year. Presented below in Table 25 performance indicators for the period.

Table 25: Analysis of Income and Expenditure for 2008 Income 2008

GH¢2007 GH¢

%Change

Administrative Grant 400,000 40,000 900.0Interest on Students Loan 329 - -Investment Income 987,933 726,983 35.9Other Income 15,267 2,159 607.1Total Income 1,403,529 769,142 82.5ExpenditureEmployment Grant 455,561 172,937 163.4Travelling & Transport 121,434 60,313 101.3Financial & Professional Charges 47,621 10,583 350.0Administration & Other Expenses 625,367 438,965 42.5Provision for Bad & Doubtful Debt

123,099 65,234 88.7

Total Expenditure 1,373,082 748,032 83.6Income Surplus 30,447 21,110 44.2

248. Total Expenditure increased by 83.6% from GH¢748,032 in 2007 to GH¢1,373,082 in 2008. This was mainly due to a 163.4% increase in Employment Cost.

249. The year ended with a surplus of GH¢30,447, an increase of 44.2% over the 2007 figure of GH¢21,110.

Financial positionShown in Table 26 is the financial position as at 2008.



Table 26: Financial position as at 2008 2008 GH¢

2007 GH¢

% Change

Non-Current Assets 19,112,279 6,765,239 182.5Current Assets 5,063,890 5,500,646 (7.9)Current Liabilities 65,625 235,305 (72.1)Net Current Assets 4,998,265 5,265,341 (5.1)Net Assets 24,110,544 12,030,580 100.4

250. Non-Current Assets rose by 182.5% from GH¢6,765,239 in 2007 to GH¢19,112,279 in 2008. This rise was mainly due to a 74.6% rise in Students Loans disbursed within the year.

251. Current Assets reduced by 7.9% from GH¢5,500,646 in 2007 to GH¢5,063,890 in 2008. The reduction was mainly due to the 45.0% reduction in Cash at Bank and 58.7% reduction in Account Receivable and Prepayments.

252. Net Assets of the Fund grew by 100.4% from GH¢12,030,580 to GH¢24,110,544 at the end of 2008.

GHANA NATIONAL TRUST FUND

Introduction253. This report relates to the audited accounts of Ghana National Trust Fund for the year ended 31 December 2008.

Operational results254. The details of the operations of the Fund are provided in the Table 27:

Table 27: Income statement for 2008 Income 2008

GH¢2007 GH¢

% Change

Donations 38,608 37,502 3.0Income from Fund Raising Activities

16,202 7,235 123.9

Other Income 14,720 11,056 33.1Total Income 69,530 55,793 24.6



ExpenditureGrants to Registered Charities 7,683 7,412 3.7Special Grants 6,762 2,820 139.8Administration & General Expenses

47,031 55,151 (14.7)

Total Expenditure 61,476 65,383 (6.0)Surplus / (Deficit) 8,054 (9,590) 184.0

255. Total Income of the Fund amounted to GH¢69,530 in 2008, representing a 24.6% increase over 2007 figure of GH¢55,793. The increase was mainly as a result of 123.9% increase in Income from Fund Raising Activities from GH¢7,235 in 2007 to GH¢16,202 in 2008.

256. Total Expenditure for the year 2008 was GH¢61,476 as against GH¢65,383 in 2007, registering a 6.0% decrease. This was due to 14.7% reduction in Administration and General Expenses from GH¢55,151 in 2007 to GH¢47,031 in 2008.

257. The year thus ended with a Net Income Surplus of GH¢8,054 compared to a deficit of GH¢9,590 in 2007.

Financial positionA summarised balance sheet position as at 31 December 2008 is shown in Table 28.

Table 28 : Balance sheet as at 31 December 20082008 GH¢

2007 GH¢

%Change

Fixed Assets 15,071 17,285 (12.8)Investments 1 1Current Assets 118,545 107,886 9.9Current Liabilities 931 540 72.4Net Current Assets 117,614 107,346 9.6Net Assets 132,686 124,632 6.5Current Ratio



258. Fixed Assets declined by 12.8% from GH¢17,285 in 2007 to GH¢15,071 in 2008. The decrease was as a result of Depreciation Charges for the year.

259. Current Assets rose by 9.9% to GH¢118,545 in 2008 (2007: GH¢107,886). The increase was due to 89.5% increase in Stocks.

260. Current Liabilities increased by GH¢391 or 72.4% from GH¢540 in 2007 to GH¢931 in 2008.

261. Net Assets of the fund grew by 6.5% from GH¢124,632 in 2007 to GH¢132,686 in 2008.

NATIONAL INSURANCE COMMISSION

Introduction262. This report relates to the audited accounts of National Insurance Commission for the year ended 31 December 2008.

Operational results263. The performance indicators are shown in the Table 29:

Table 29:Income statement for 2008 Item 2008

GH¢2007GH¢

% Change

Income 3,047,820 2,140,460 42.4Expenditure 2,696,563 2,088,823 29.1Surplus 351,257 51,637 580.2

264. Total Income rose by 42.4% from GH¢2,140,460 in 2007 to GH¢3,047,820 in 2008. Total Expenditure also increased by 29.1% from GH¢2,088,823 in 2007 to GH¢2,696,563 in 2008. This resulted in a 580.2% increase in surplus for the year from GH¢51,637 in 2007 to GH¢351,257 in 2008.

Financial position265. Details of the Commission’s financial position as at 31 December 2008 are shown in Table 30:



Table 30: Financial position as at 31 December 2008 Item 2008

GH¢2007GH¢

% Change

Non-Current Assets 1,042,965 1,123,808 (7.2)Current Assets 1,715,485 1,300,009 32.0Current Liabilities 77,449 66,062 17.2Net Current Assets 1,638,036 1,233,947 32.7Long-Term Loan - 2,575 -Net Assets 2,681,001 2,355,180 13.8Current Ratio 22.1:1 19.7:1

266. Non-Current Assets dropped by 7.2% from GH¢1,123,808 in 2007 to GH¢1,042,965 in 2008. This decrease was due to depreciation of fixed assets during the year.

267. Current Assets increased by 32.0% from GH¢1,300,009 in 2007 to GH¢1,715,485 in 2008 due to a 226.3% increase in Cash and Bank Balances and a 46.5% increase in Short-Term Investments.

268. Current Liabilities also went up by 17.2% from GH¢66,062 in 2007 to GH¢77,449 in 2008.269. The liquidity position as indicated by the current ratio of 22.1:1(19.7:1, 2007) shows there is too much money on hand. This could be invested in short-term stocks for some return.

NATIONAL LOTTERY AUTHORITY

Introduction270. This report relates to the audited accounts of National Lottery Authority (NLA) for the year ended 31 December 2008.

Operational results271. The Authority declared a surplus of GH¢13,772,585 in 2008 as against a surplus of GH¢7,776,502 in 2007, an increase of 77.1%. The performance components for the year under review are shown in the Table 31.




GH¢2007GH¢

% Change

RevenueLotto Intake 116,500,002 85,023,915 37.0Operating Expenses (Direct & Indirect)

110,092,575 77,567,406 41.9

Operating Profit 6,407,427 7,456,509 (14.1)Miscellaneous Income 7,365,158 319,993 2,201.7Net Surplus 13,772,585 7,776,502 77.1

272. Lotto Intake, the main source of income of the Authority rose by 37.0% from GH¢85,023,915 in 2007 to GH¢116,500,002 in 2008. Miscellaneous Income, comprising Income from Investments, Sundries and Income from MOBI Game also increased by 2,201.7% from GH¢319,993 in 2007 to GH¢7,365,158 at the end of 2008.

273. Operating Cost (Direct and Indirect) rose by 41.9% from GH¢77,567,406 in 2007 to GH¢110,092,575 in 2008. The increase was due mainly to increases in the payment of lotto receivers’ commission and lotto prizes.

Financial position Table 32 provides the financial position as at 31 December 2008


GH¢2007GH¢

% Change

Fixed Assets 12,623,495 10,732,487 17.6Current Assets 11,996,189 7,053,655 70.1Current Liabilities 8,555,284 4,824,120 77.3Net Current Assets 3,440,905 2,229,535 54.3Net Assets 16,064,400 12,962,022 23.9Current Ratio 1.4:1 1.5:1

274. Fixed Assets increased by 17.6% from GH¢10,732,487 in 2007 to GH¢12,623,495 in 2008. The increase was due to additions to assets totalling GH¢3,220,906.



275. Current Assets rose from GH¢7,053,655 in 2007 to GH¢11,996,189 in 2008, an increase of 70.1%. The increase was due to increase in Sundry Debtors and Cash and Bank Balances.

276. Current Liabilities also increased from GH¢4,824,120 in 2007 to GH¢8,555,284 in 2008 representing a rise of 77.3%. The increment was as a result of increases in Accrued Charges, Bank Overdraft and Creditors.

277. The Current Ratio of the Authority stood at 1.4:1 in the current year as against that of 1.5:1 in 2007. This means that the Authority can partially meet its short-term obligations as and when they fall due.

GHANA EDUATION TRUST FUNDIntroduction278. This report relates to the audited accounts of Ghana Education Trust Fund (GETFUND) for the year ended 31 December 2008.

Operational Results279. The performance indicators are shown in the Table 33:

Table 33: Performance indicators for 2008 Item 2008

GH¢2007GH¢

%Change

RevenueOperational Allocation 1,000,000 1,100,000 (9.1)Allocation from Investment Income 200,000 - -Other Income 263,267 154,490 70.4Total Income 1,463,267 1,254,490 16.6ExpenditureGeneral & Administrative Expenses 1,365,449 1,100,684 24.1Surplus 97,818 153,806 (36.4)

280. Total Income rose by 16.6% from GH¢1,254,490 in 2007 to GH¢1,463,267 in 2008. This was due to a 70.4% increase in Other Income resulting from the sale of tender documents and the increase in bank interest.



281. Total Expenditure also increased by 24.1% from GH¢1,100,684 in 2007 to GH¢1,365,449 in 2008. This resulted in a 36.4% drop in the surplus for the year from GH¢153,806 in 2007 to GH¢97,818 in 2008.

Financial PositionThe Fund’s balance sheet position as at 31 December 2008 is provided in Table 34


GH¢2007GH¢

%Change

Non-Current Assets 23,565,581 26,410,010 (10.8)Current Assets 83,537,593 93,780,352 (10.9)Current Liabilities 86,430,334 86,564,107 (0.2)Net Current Assets (Liabilities) (2,892,741) 7,216,245 (140.1)Net Assets 20,672,840 33,626,255 (38.5)Current Ratio 0.97:1 1.08:1 16.6

282. Non-Current Assets decreased by 10.8% from GH¢26,410,010 in 2007 to GH¢23,565,581 in 2008 due to an 11.0% reduction in Property, Plant and Equipment and a 23.0% drop in Investment Properties.

283. Current Assets dropped by 10.9% from GH¢93,780,352 in 2007 to GH¢83,537,593 in 2008. The decrease was due to a 34.2% fall in Short-Term Investments during the year under review.

284. Current Liabilities also decreased marginally by 0.2% from GH¢86,564,107 in 2007 to GH¢86,430,334 in 2008.

285. The Fund’s Current Ratio of 0.97:1 (2007: 1.08:1) shows that the Fund will not be able to meet its short term obligations when they fall due.



COCOA MARKETING COMPANY (GHANA) LIMITED

Introduction286. This report covers the audited accounts of Cocoa Marketing Company (Ghana) Limited for the year ended 30 September 2008.

Operational Results287. The Company’s operations for the year 2008 ended with a net profit of GH¢13,450 as against GH¢6,823 in 2007, an increase of 97.1%. Presented in Table 35 are the performance indicators of the Company.


GH¢2007GH¢

% Change

IncomeSales Commission 7,336,668 5,712,907 28.4Share of FOB 11,870,705 9,333,810 27.2Other Income 1,329,070 394,361 237.0Total Income 20,536,443 15,441,078 33.0ExpenditureOperating Expenses 8,309,856 6,022,408 38.0Personnel Cost 7,691,603 4,804,194 60.1Establishment Cost 3,286,105 3,797,175 (13.5)Administrative Cost 619,759 379,594 63.3Professional & Financial Charges 155,091 77,257 100.7Depreciation 460,579 353,627 30.2Total Expenditure 20,522,993 15,434,255 33.0Net Profit 13,450 6,823 97.1

288. Total Income rose by 33.0% from GH¢15,441,078 in 2007 to GH¢20,536,443 in 2008.

289. The Expenditure increased by 33.0% from GH¢15,434,255 in 2007 to GH¢20,522,993 in 2008. The increase was mainly due to increases in Personnel Cost and Operating Expenses.



Financial positionThe Company’s financial position is provided in Table 36


GH¢2007GH¢

% Change

Non-Current AssetsProperty, Plant & Equipment 1,005,713 923,167 8.9Long-Term Investment 289,047 289,047 -Total Non-Current Assets 1,294,760 1,212,214 6.8Current Assets 23,859,963 46,015,552 (48.1)Current Liabilities 7,685,242 49,824,599 (84.6)Net Current Assets 16,174,721 (3,809,047) 524.6Net Assets 17,469,481 (2,596,833) 772.7Current Ratio 3.1:1 0.9:1

290. Non-Current Assets grew by 6.8% from GH¢1,212,214 in 2007 to GH¢1,294,760 in 2008. The increase was due to additions of Motor Vehicles, Furniture & Equipment and Computers.

291. There was a significant reduction in Current Assets from GH¢46,015,552 in 2007 to GH¢23,859,963 in 2008. A decrease of 65.5% in Short-Term Deposits mainly accounted for the reduction.

292. Current Liabilities also fell by 84.6% from GH¢49,824,599 in 2007 to GH¢7,685,242 in 2008 and this was mainly due to the settlement of Trade Payables of GH¢41,844,309 from the previous year.

293. The Company’s liquidity ratio of 3.1:1 (2007:0.9;1) showed that the Company can discharge its short-term debts as and when they fall due.



MANAGEMENT ISSUES

Shareholding in Cocoa Marketing Company (UK) Limited294. We could not cite any evidence of the shareholding of Cocoa Marketing Company (Ghana) Limited in its subsidiary (Cocoa Marketing Company (UK) Limited).

295. The team was made to understand that, Ghana Cocoa Board has 99% of the shares of Cocoa Marketing Company (Ghana) Limited to the effect that the ownership of Cocoa Marketing Company (UK) Limited is uncertain. The Cocoa Marketing Company (Ghana) Limited’s share in the UK subsidiary is not supported by any evidence of shares issued.

296. We recommended that, the ownership of CMC (UK) Limited should be regularised by obtaining a share certificate to support the shares held in CMC (UK) Limited.

297. Also, the claim by COCOBOD that it owns 99% of the Shares of CMC (UK) Limited with only 1% owned by CMC (GH) Limited should be resolved to avoid any doubts regarding the ownership.

298. Management responded that it is making efforts to regularize the shareholding in CMC (UK) Ltd.

MINISTRY OF EDUCATION

NATIONAL ACCREDITATION BOARD

Introduction299. This report covers the audited accounts of the National Accreditation Board for the year ended 31 December 2007.

Operational results300. Total income for the year 2007 amounted GH¢984,240.03 as compared with the previous year’s figure of GH¢745,915.36 thus registering an increase of GH¢238.324.67 or 32.0%. This was largely due to upward revision of fees to reflect current basic cost of



accreditation as well as a 12.2% increase in Government subvention. Presented in Table 37 are the components of Income for the period.

Table 37: Income statement for 2007Income 2007

GH¢2006GH¢

% Increase/Decrease

Gov’t subvention 397,977.04 354,816.92 12.2Sundry Income 586,262.99 391,098.44 49.9Total 984,240.03 745,915.36 32.0

Expenditure301. Total Expenditure for the year under review amounted to GH¢807,346.63 as against GH¢644,541.62 recorded in 2006. This showed an increase of GH¢162,805.01 or 25.3% over the previous year’s expenditure. This increase was largely due to increase cost of accreditation exercise and 15 % salary arrears paid in the year under review. The indicators are provided in Table 38.

Table 38: Expenditure statement for 2008Expenditure 2007

GH¢2006GH¢

% Increase/Decrease

Personal Emoluments 385,026.60 291,508.52 32.1Administration 196,093.98 186,939.71 4.9Service 204,233.90 166.093.40 23.0Depreciation charge 21,992.15Total 807,346.63 644,541.62 25.3

Financial position302. Fixed Assets which stood at GH¢110,126.46 in year 2007, registered a net increase of GH¢13,126.60 over the year 2006 figure of GH¢96,999.86 or 13.5%. This was as a result of acquisition of motor vehicles and equipment amounting to GH¢30,634.75 and GH¢4,484 respectively.

303. Current Assets for the year under review amounted to GH¢425,856.94 as against GH¢231,455.38; an increase of GH¢194,401.56 or 84.0% over the 2006 figure, resulting from additions made to short term investment of the Board and cash at



Bank. The current assets for 2007 were made up of Cash and Bank balance of GH¢148,235.88, rent prepaid of GH¢13,500.00, staff advances of GH¢26,063.34 and investments amounting to GH¢238,057.72.

304. The Accumulated Fund recorded an increase from GH¢328,455.24 in 2006 to GH¢505,348.64 or 53.9% in 2007 due to excess of income over expenditure of GH¢176,893.40 recorded. The Board also received Capital Grant of GH¢30,634.75 from the Netherlands Government towards the Netherlands Organisation for International Co-operation in Higher Education (NUFFIC) Project.

MANAGEMENT ISSUES

Poor internal control over payment of hotel bills 305. Most payment vouchers to settle hotel bills were not adequately supported with the requisite documents such as memos giving reasons for the need of the accommodation, number of days and type of facilities to be accessed by the guest as well as evidence of authorisation of such booking. The payments were supported with only invoices of respective hotels.

306. Notwithstanding Regulation 199 (1) of L.I. 1802 which states that “an officer shall not sign any incomplete document or record pertaining to accounts”, the deficient payment vouchers totalling GH¢19,398.43 were approved and authorised by the responsible officers for payment.

307. We could therefore not ascertain whether the amounts paid to the respective hotels were due and payable.

308. The lapse was partly attributed to the absence of an accounting and administrative manual to guide officers as well as failure on the part of the spending officers to ensure that decisions taken on hotel reservations and booking were documented.



309. We therefore recommended and management agreed to ensure that future transactions are properly authenticated. We also reiterated the recommendation in our management letter referenced CAD/DA/50/VOL.1/71 of 31 March 2008 that an Accounting and Administrative Manual be introduced to regulate the financial and administrative activities of the Board.

NATIONAL COUNCIL FOR TERTIARY EDUCATION

Introduction310. This report covers the audited accounts of the National Council for Tertiary Education for the year ended 31 December 2008.

Operational results311. The year 2008 ended with a deficit of GH¢64,437 as against a surplus of GH¢68,565 recorded in 2007, a decrease of GH¢133,002 or 194.0%. This was as a result of a decline of 16.5% in subvention. Table 39 shows a summary of the income and expenditure accounts for the year 2008.


GH¢ 2007 GH¢

Change GH¢

%Change

Subvention 720,958 863,093 (143,135) (16.5)Other Income 14,631 1,471 13,160 894.6

Total Income 735,589 864,564 (128,975) (14.9)

Expenditure

Personnel Emoluments 529,106 501,028 28,078 5.6

Administration 229,235 219,407 9,828 4.5

Service 41,685 75,564 (33,879) (44.8)

Total Expenditure 800,026 795,999 4,027 0.5

Surplus/ Deficit (64,437) 68,565 (133,002) (194.0)



Income312. Total income for the year fell by GH¢128,975 from GH¢864,564 in 2007 to GH¢735,589 in 2008. The fall was due to a decrease in subvention by 16.5% to GH720,958. The sharp rise in other income was largely due to income authorise from workshop for tertiary institutions.

Expenditure313. Total expenditure went up marginally by 0.5% or GH¢4,027 from GH¢795,999 in 2007 to GH¢800,026 in 2008 due to increases in salary as well as meeting and office consumable equipment expenses included in general administration.

Financial position314. Net book value of the assets dropped to GH¢97,964 in 2008 from GH¢102,396 the previous year. The drop was due to depreciation charge. Acquisition of fixed assets during the year was made up of equipment, furniture and fittings of GH¢6,409 and GH¢120 respectively.

Current assets and liabilities315. Current assets of the Council stood at GH¢108,274 in 2007 but reduced to GH¢61,985 in 2008. The drop of 69.03% in bank balance at the close of the year largely accounted for the reduction.

316. Current liabilities on the other hand increased by GH¢17,200 or 898.2% due to unsettled tax withheld, council members allowancesand money held in Trust for “TALIF”.

317. Though the liquidity position of the Council as measured by a current ratio dropped from 56.5:1 in 2007 to 4:1 in 2008, the Council continued to be in a favourable position to discharge its short-term obligations falling due.



Accumulated fund318. The fund registered GH¢105,859 for the year 2008 as against GH¢173,840 in 2007 representing a decrease of GH¢67,981 as a result of the deficit recorded for 2008 financial year.

MANAGEMENT ISSUES

Purchases from non VAT registered persons319. Our audit revealed that goods worth GH¢2,671.20 procured by the Council in 2008 were not from VAT registered persons or entities, contrary to Regulation 183 (4) of L.I.1802. As a result a tax amount of GH¢ 380.64 was lost to the state.

320. We recommended that management should in future, procure its goods and services from VAT registered entities in order to contribute to the revenue generation of the state.

Unpresented payment vouchers – GH¢9,772.39321. The Accountant of NCTE failed to produce payment vouchers amounting to GH¢9,772.39 for audit. The lapse contravened Regulation 262 of L.I. 1802 which provides that a head of department shall ensure that financial and accounting records are preserved in good order in a manner that facilitates ready access for reference”.

322. We could therefore not determine whether the monies were expended for the purposes for which they were appropriated and the expenditures made were as authorised. Management’s non-compliance with the provisions of the FAR could result in the abuse of government funds.

323. We recommended that steps should be should taken to trace the payment vouchers for audit, otherwise the appropriate recoveries should be made by the responsible officials. We also advised that management should ensure that accounting records are kept in a manner that facilitates ready access for reference as enjoined by FAR 262.



Misapplication of funds from personnel emoluments account-GH 65,451.00324. Section 171(2)(b) of the FAR states that “Under no circumstance shall expenditure under personal emoluments be vired for other purposes without the approval of the Minister, and (c) virement between items of expenditure can only be done with approval of the Minister.”

325. Our audit revealed that an amount of GH¢594,557 was released for the payment of personnel emoluments in 2008. We however noted that payment of personnel emoluments for the review period amounted to GH¢529,106 resulting in a balance of GH¢65,451, which according to management had been used to meet administrative and service expenses of the Council since funds released for these activities was below the needed amount.

326. This action by management contravened the above stated regulations as the use of the excess fund was without recourse to the relevant regulation and could negatively affect government finances.

327. We recommended that the Council should obtain approval from the appropriate authority to rectify the anomaly, otherwise in subsequent budget releases, the amount should be offset against future funds.

GOVERNMENT TECHNICAL TRAINING CENTRE FOR

Introduction 328. This report is related to the audited accounts of the Government Technical Training Centre (GTTC) for three years ended 31 December 2008.

Operational results329. GTTC recorded a deficit of GH¢4,729.78 in 2008 as against a surplus of GH¢5,105.52 in 2007. This was mainly due to the 317.87%



and 122.49% increases in administrative and service expenses not matched with a corresponding increase in income. The rise was attributed to increases in expenditure on stationery, maintenance of official vehicles and telecommunication charges. Table 40 is a comparative table of the income and expenditure account.

Table 40: Comparative income statement for 2008 and 2007Income 2008

GH¢2007 GH¢

% Change

Subvention 14,849.34 55,823.61 (73.40)School Fees 6,508.15 7,806.55 (16.67)Other Income 1,524.00 1,451.00 6.27Admission Forms 375.00 500.00 (25.00)Total Income 23,256.49 65,581.16 (64.54)ExpenditurePersonal Emolument 8,240.60 54,942.76 (85.00)Admin. Expenses 15,903.01 3,805.76 317.87Service Expenses 3,842.66 1,727.12 122.49Investment Activity - - -Total Expenditure 27,986.27 60,475.64 (53.72)Excess of Income/Expenditure

(4,729.78) 5,105.52 (192.64)

330. Total income decreased by 64.54% from GH¢65,581.16 in 2007 to GH¢23,256.49 in 2008. The 73.4% drop in subvention from GH¢55,823.61 in 2007 to GH¢ 14,849.34 in 2008 which constitutes 63% of the total income largely accounted for the decrease.

331. Total expenditure also decreased by 53.72%, falling from GH¢60,475.64 in 2007 to GH¢27,986.27 in 2008. This was due to the transfer of the payroll function to the Controller and Accountant’s General Department during 2008. The significant rise in administrative and service expenditure in 2008 was because no subvention was released for those activities in 2007, hence the low expenditure.



Financial position332. There were no additions to fixed assets in 2008 and it has been the policy of management not to charge depreciation. We recommended that management should adopt an appropriate depreciation policy for fair reporting.

333. Current assets of the Centre declined by 440.6% from GH¢11,105.49 in 2007 to GH¢6,233.71 in 2008 because of the significant drop in the cash and bank balances. Current liabilities also registered a drop of 3.6% from GH¢3,911.04 in 2007 to GH¢ 3,769.04 in 2008.

334. The liquidity outlook as portrayed by a current ratio of 1.65:1 (2007:2.8:1) indicates the Centre’s inability to meet its short term debts as and when they fall due.

335. Net assets representing long term solvency and stability of the Board recorded a decrease of 8.78% to GH¢49,150.81 resulting from the unfavorable operational performance in 2008.

MANAGEMENT ISSUES

Receipts not fully banked- GH¢3,760.83336. Contrary to FAR 18 which states that ‘A department that has legislative approval to retain all or a portion of Internally Generated Funds (IGF) collected, must first lodge the retained IGF in gross into the Department’s operational bank account, only GH¢21,282.75 was banked out of a total IGF collection of GH¢25,043.58 for the review period resulting in an unaccounted balance of GH¢3,760.83.

337. The Cashier’s non–adherence to the above stated regulation and lack of supervision caused the anomaly. Consequently, the Centre was deprived of the much-needed funds to meet its financial obligations.

338. We recommended that the cashier should account for the outstanding balance of GH¢3,760.83 and advised the Accountant to



supervise the work of the cashier to prevent recurrence of the anomaly.

339. Management informed us that an amount of GH2,488.83 had been recovered leaving a balance of GH1,272.00 adding that the necessary steps had been taken to prevent future recurrence of the anomaly.

Unauthorised printing of receipt books340. In 2004, management ordered the printing of 100 receipt books from Wadzo Enterprises Limited in contravention of FAR 211 (1) which states that “the Controller and Accountant General is responsible for approving the form and content of value Books and ordering supplies of Value Books from the printers”.

341. Management explained that advertising the Centre was its main concern and oblivious of the provisions of the regulation quoted, thought that the receipt books which bore the name of the school was a form of advertisement.

342. We were of the view that the receipts lacked security features and were susceptible to duplication. This might not only lead to loss of funds by the Centre but also infringe on its integrity.

343. To preclude revenue leakage, we recommended that the Centre routes the procurement of its value books through the Controller and Accountant General’s Department (C&AGD).

Conversion of canteen block into classroom and library344. Management decided to construct a one-storey six-classroom/library block in place of its canteen to increase enrollment at GTTC. Ministry of Transportation awarded the contract to Messrs Kosefeld Enterprise Limited on 15 February 2007 at a contract sum of GH¢202,760.58 to be completed within six months.



345. We however observed that, three years after the award of the contract, the project had not begun. Currently, students are cramped in two small rooms which served as teachers’ rest room and changing room for students. The situation was not conducive for proper academic work and the delay would lead to cost fluctuations resulting in a higher contract sum.

346. We therefore recommended to management to liaise with the Sector Ministry to source for funding from MoFEP for the construction.

347. Management informed us that the issue was being pursued with all seriousness with the Ministry of Transport.

Absence of Audit Report Implementation Committee348. We observed that management has failed to comply with Section 30(1) of the Audit Service Act 2000 (Act 584), which enjoins an institution, body or organization, which is subject to auditing by the Auditor-General to establish an Audit Report Implementation Committee (ARIC).

349. We drew management’s attention to the importance of the supervisory role ARIC performs as far as the implementation of audit recommendations are concerned and advised management to establish an ARIC as early as possible.

350. Management stated that it was challenged in the formation of the Committee because of the absence of its Board of Governors adding that as soon as the Board was appointed, the Committee would be formed.

Flooding of the Centre’s compound351. The Centre in June 2009, had equipment and items estimated at GH¢40,000.00 destroyed by floods. According to management, Metro Mass Transport Transit Co. Ltd had constructed a concrete wall,



which hinders the volume of water entering the Centre’s premises to flow into the main drains thus causing the flooding.

352. Management was advised as a matter of urgency to seek technical assistance from Accra Metropolitan Assembly (AMA) to prevent future flooding.

353. Management responded that it was finding solution to the drainage problem with the Accra Metropolitan Assembly and Ministry of Transport.

NATIONAL BOARD FOR PROFESSIONAL ANDTECHNICIAN EXAMINATIONS

Introduction

354. This report relates to the audited accounts of the National Board for Professional and Technical Examinations for the two-year period ended 31 December 2008.

Operational results355. Total income registered an increase of 36.9% from GH¢779,472 in 2007 to GH¢1,067,307 in 2008. Government Subvention which accounted for 54.6% of total income, increased sharply by 91.1% from GH¢305,080 in 2007 to GH¢583,117 in 2008. Internally Generated Fund (IGF) being the other component of total income witnessed a marginal increase of 2.1% form GH¢474,392 in 2007 to GH¢ 484,190 in 2008.Table 41 is the summary of income and expenditure statement for the two comparative years.

Table 41: Income statement for 2008Income 2 008

GH¢2007GH¢

% Increase/Decrease

Government Subvention 583,116.82 305,079.90 91.1IGF/Other Income 484,189.65 474,391.75 2.1Total 1,067,306.77 779,471.65 36.9ExpenditurePersonnel Emoluments 491,647.69 346,485.52 41.9Administration 273,506.20 206,319.60 32.6



Service 227,393.14 219,319.70 3.7Total 992,547.03 772,124.82 28.5

356. Total Expenditure incurred in 2008 totaled GH¢992,547 as against GH¢772,124 in the previous year, an increase of 28.5%. The expenditure component included Personnel Emoluments of GH¢491,648 (2007: GH¢346,486) representing 41.9%, Service Activity Expenditure GH¢227,393 (2007: GH¢219,319), and Administration Activity Expenditure GH¢273,506 (2007: GH¢206,319).

357. An operational surplus of GH¢74,760 was registered during the year, compared with an amount of GH¢7,347 recorded in the preceding year.

Financial position358. The Board’s Fixed Assets registered GH¢178,304 in 2008 compared with GH¢149,474 in 2007, a growth of 19.3%. This was due to the acquisition of office equipment and furniture.

359. Current Assets made up of bank balances and debtors, rose from GH¢36,785 in 2007 to GH¢70,935 in 2008.

360. Liquidity outlook remained strong as no Current Liability was recorded in 2008.

361. Accumulated Fund went up from GH¢174,480 in 2007 to GH¢249,240 in 2008 as a result of the surplus recorded.

GHANA SCIENCE ASSOCIATION

Introduction362. This report is related to the audited accounts of the Ghana Science Association for the two-year ended 31 December 2008.



Operational results363. Total Income registered a decrease of 15.1% from GH¢196,555.73 in 2007 to GH¢166,890.06 in 2008. IGF receipts decreased by 50.2% from GH¢130,830.52 in 2007 to GH¢65,101.85 in 2008. The decrease in IGF was because Conferences, which attracted more patronage and higher income, were few in 2008. Government Subvention however increased by 54.9% in 2008 (GH¢65,725.21 –2007; - GH¢101,788.21 –2008). The Increase was the result of salary adjustment and fourth quarter administration subvention for 2007 received in 2008. Provided in Table 42 are the performance indicators

Table 42: Income statement for 2008Income 2 008

GH¢2007GH¢

% Increase/Decrease

Government Subvention 101,788.21 65,725.21 54.9

IGF/Other Income 65,101.85 130,830.52 (50.2)

Total 166,890.06 196,555.73 (15.1)

ExpenditurePersonnel Emoluments 96,914.14 65,346.09 48.3

Administration 23,102.16 20,402.69 13.2

Service 47,560.16 79,284.75 (40.0)

Total 167,576.46 164,035.09 2.2Surplus/(Deficit) (686.40) 31,522.20 (97.8)

364. Expenditure incurred in 2008 totalled GH¢167,576.46 as against GH¢164,035.09 in the previous year, an increase of 2.2%. Total expenditure included Personnel Emoluments of GH¢96,914.14 (2007: GH¢65,346.09) representing a 48.3% increase; Service Activity Expenditure of GH¢47,560.16 (2007: GH¢79,284.75) a decrease of 40.0%; and Administration Activity Expenditure of GH¢23,102.16 (2007: GH¢20,402.69) a rise of 13.2%.

365. The net result on operations for 2008 was a deficit of GH¢686.40, compared to a surplus of GH¢31,522.20 recorded in the preceding year.



Financial position366. The Association’s fixed assets stood at GH¢73,884.55 in 2008 compared with GH¢35,238.98 in 2007, a growth of 109.7%. The increase was as a result of acquisition of Office Equipment as well as additional payment for the Building Project, which is near completion.

367. Though current assets fell from GH¢169,014.88 in 2007 to GH¢129,682.91 in 2008, liquidity outlook remained strong as no current liability was recorded in 2008.

MANAGEMENT ISSUES

Failure to deduct taxes from committee’s sitting allowances –GH¢480.90 368. Contrary to Section 84(1) (a) and (b) of the IRS Act 2000 (Act 592) withholding tax of GH¢480.90 was not deducted from sitting allowances paid to members of the National Executive Committee and other committees.

369. The irregularity resulted in the loss of tax revenue of GH¢480.90 accruing to the state. Consequently the government was denied of the much-needed revenue to meet its development programs.

370. We recommended that management should promptly deduct and pay to the Commissioner of IRS, the appropriate tax on all future sitting allowances paid to members of the NEC and other committees, for avoidance of surcharges.

371. Management agreed to implement our recommendation immediately.

GSA not established by Act of Parliament 372. The Association, which was mandated, to promote, popularize and demystify science and creates a scientific culture in the country



traces its origin to the West African Science Association (WASA). However apart from GSA’s constitution, the operations of the Association were not regulated by any Act of Parliament, which would otherwise strengthen its legal existence and enhance continuous parliamentary support financially.

373. We advised management to contact Parliament through the Ministry of Education and other stakeholders to enact an establishment law for the Association.

374. Management appreciated our recommendation and promised to act accordingly as the matter had been discussed before.

Absence of internal audit 375. Section 16(5) of the Internal Audit Agency Act, 2003 (Act 658) requires autonomous bodies of Constitution to have Internal Audit Units, which shall carry out audits and submit reports on them.

376. Contrary to the above stated regulation, the Association had no Internal Audit Unit because of the failure of management to apply for such services from its sector ministry or liaise with the Internal Audit Agency for such assistance.

377. As the internal audit function is to regularly inform management on weaknesses in the system to enhance decision-making, its absence impacts negatively on the efficiency and effectiveness of management.

378. For sound financial practices and to enhance best management practices, we advised management to seek the services of an Internal Auditor from the Internal Audit Agency.

Non-existence of Audit Report Implementation Committee (ARIC) 379. Management of the Association had not established an ARIC, contrary to Section 30(1) of the Audit Service Act, 2000 (Act 584).



380. In our view the establishment of ARIC would facilitate the implementation of audit recommendations, which would consequently prevent recurrences of lapses.

381. Management explained that, it was not aware of Section 30(1) of Act 584 and therefore regretted the anomaly.

382. We advised management to establish an ARIC to ensure prompt implementation of all audit recommendations and also to enable us assesses the level of implementation of our recommendations.

ENCYCLOPEDIA AFRICANA PROJECT Introduction383. This report covers the audited accounts of the Encyclopedia Africana project for two years ended 31 December 2008.

Operational results 384. The EAP’s operational activities for the year ended with a surplus of GH¢3,036.06 as against a deficit of GH¢18,794.18 earned in 2007. This was mainly due to a rise in Government subvention of 31.91% and a decrease in total expenditure of 4.67%. Table 43 shows a summary of the income statement.


GH¢2007GH¢

% Change

Subvention 110,057.13 83,432.42 31.91Ghana Aids Commission 390.20 390.20 -Total 110,447.33 83,822.62 31.76ExpenditurePersonnel Emolument 81,706.99 77,132.81 5.93Administrative Expenses 24,504.83 24,110.99 (1.6)Service Activity Expenses

1,199.45 1,373.00 (12.64)

Total 107,411.27 102,616.80 (4.67)Surplus/Deficit 3,036.06 (18,794.18) 116.15



385. Total Income increased by GH¢26,624.71 or 31.76% from GH¢83,832.62 in 2007 to GH¢110,447.33 in 2008. Government subvention, which is the major source of income, rose from GH¢83,432.42 in 2007 to GH¢110,057.13 in 2008; an increase of GH¢26,624.71 or 31.76%.

386. Total Expenditure on the other hand decreased by GH¢4,794.47 or 4.67% to GH¢107,411.27 in 2008 (2007: GH¢102,616.80). Personnel Emolument increased by 5.93% from GH¢77,132.81 in 2007 to GH¢81,706.99 in 2008, whilst administrative expenses decreased to GH¢24,504.83 in 2008 (2007: GH¢24,110.99) a fall of GH¢393.84 or 1.63%. Service activity expenses also decreased marginally by GH¢173.55 or 12.64% over the 2007 figure of GH¢1,373 to GH¢1,119.45.

Financial position387. Provided in Table 44 is a summary of the balance sheet position as at 31 December 2008.

Table 44: Balance sheet as at 31 December 2008Items 2008

GH¢2007 GH¢

% ChangeIncrease/Decrease

Fixed Assets 47,675.32 27,985.26 70.35Current Assets 11,991.20 4,820.41 148.76Current Liabilities 3,901.26 4,276.46 (8.77)Net Current Assets 7,950.43 404.44 1,865.79Liquidity Ratio 3.07:1 1.13:1

388. Non Current Assets increased by GH¢19,690.06 or 70.35% to GH¢47,675.32 in the year under review (2007: GH¢27,985.26). The increase in non-current asset was mainly due to the acquisition of Motor vehicle amounting to GH¢24,200.00 in the year under review.

389. Current assets increased by GH¢7,170.79 or 148.76% to GH¢11,991.20 in the year under review (2007: GH¢4,820.41). This was made up of cash and bank balances of GH¢8,514.22 and staff



debtors of GH¢3,476.98. Current liabilities recorded a decrease of 0.08% or GH¢375.21 from the previous year’s figure of GH¢4,276.47 to GH¢3,901.26. The increase in current assets was due to the increase in bank balance from GH¢20.39 in 2007 to GH¢7,747.70 in 2008 due to late release of subvention.

390. The liquidity position as measured by a current asset ratio of 3:1 for the 2008 financial year indicated the ability of the Project to meet its short-term debts as and when they fall due.

Accumulated FundThe favourable operational surplus of GH¢3,071.46 registered during the financial year 2008 led to improvement of the Project’s long term solvency and stability.

MANAGEMENT ISSUES

Absence of internal audit unit391. Our review of payment vouchers revealed that payments were effected without an internal auditor’s review to ensure sound financial practices. The above practice which resulted from the absence of an Internal Audit Unit contravened Section 16 (1) of the Internal Audit Agency Act 2005, (Act 658).

392. We advised management to establish an internal audit unit as required by Section 16(1) of Act 658 for sound financial practices and to enhance best management practices.

393. Management stated that efforts were underway to get budgetary allocation for the recruitment of an Internal Auditor to man an Internal Audit Unit to be established.

Overdue loans – GH¢139.51394. We observed that a former staff, Mr. Ken D. Addo had an outstanding loan balance of GH¢139.51 not recovered prior to



desertion of his post. According to management, efforts to trace him to recover the amount involved had proved futile.

395. This situation could result in loss of funds to EAP and also overstate the debtors figure in the financial statements, which could be misleading.

396. We therefore recommended that management should make strenuous efforts to locate and retrieve the above stated amount from Mr. Ken Addo.

Fuel purchases not entered in vehicle log books397. We observed during the period under review that fuel bought and recorded in the vehicle logbooks of five vehicles varied with fuel purchases on payment vouchers. We were thus unable to confirm whether fuel purchases amounting to GH¢5,557.40 were used in furtherance of the Projects programme.

398. The situation was a result of management’s failure to exercise effective control over the drivers by reviewing their vehicle logbooks.

399. We advised management to ensure that the GH¢5,557.40 worth of fuel and future issues to drivers are properly accounted for, failing which the amount should be recovered from the drivers. We also advised management to improve upon its supervisory role over drivers by periodically reviewing vehicle logbooks.

Non-operational editorial board of the Project400. We observed that since 1962, the Standing Committee of the Editorial Board, which has overall management responsibility of the Encyclopedia Africana Project, had not met. As a result, there were no board minutes to evaluate contents of decisions taken and their level of implementation during the period under review. Additionally, the Committee’s responsibility of periodically setting agenda for EAP and assisting in identification of authors for preparation of materials for the production of the Encyclopedia Africana were not discharged.



401. Management attributed the foregoing situation to several socio-political upheavals on the African continent. Consequently, the Project was able to publish only three out of the envisaged 20-volume dictionary of African biography since its inception in 1962, 48 years ago. We also noted that the absence of the Standing Committee resulted in challenges such as the Secretariat’s inability to mobilize sufficient funding, strengthen its infrastructure and human resource capacities among others.

402. We advised management to appeal to the relevant governmental agencies, non-governmental and donor agencies for the necessary funding to organise editorial board meeting in order to elect members of the standing committee and revamp interest in the Project.

403. Management assured us that the Secretariat had not relented in its effort to secure the much needed funding to convene the next Editorial Board meeting.

Absence of an Audit Report Implementation Committee404. Section 30 of the Audit Service Act, 2000, Act 584 states among other things that an institution, body or organization, which is subject to auditing by the Auditor-General, shall establish an Audit Report Implementation Committee (ARIC).

405. Contrary to the above requirement, our audit revealed that the Project had not established an ARIC. Management’s non-compliance with the relevant section of Act 584 would lead to non-implementation of matters in all monitoring reports including recommendations made in our auditing reports.

406. We recommended that management take the necessary steps to constitute an ARIC in conformity with statutory requirements.



UNIVERSITY OF DEVELOPMENT STUDIESIntroduction407. This report relates to the audited accounts of the University of Development Studies for the year ended 31 December 2007.

Operational results408. The performance indicators for the period are shown in the Table 45

Table 45: Performance indicators for 2007

Income2007GH¢

2006GH¢

% Change

Subvention 6,152,146 3,911,309 57.3Internally Generated Funds 3,037,759 2,365,338 28.4Total Income 9,189,905 6,276,647 46.4ExpenditurePersonnel Emoluments 6,248,837 3,903,891 60.1Administrative Activity 2,342,478 2,160,456 8.4Service Activity 827,233 531,973 55.5Total Expenditure 9,418,548 6,596,320 42.8Surplus / (Deficit) (228,643) (319,673) 28.5

409. Total Income rose by 46.4% from GH¢6,276,647 in 2006 to GH¢9,189,905 in 2007. The rise was due to a 57.3% increase in Subvention from GH¢3,911,309 in 2006 to GH¢6,152,146 in 2007 and a 28.4% increase in Internally Generated Funds from GH¢2,365,338 in 2006 to GH¢3,037,759 in 2007.

410. Total Expenditure also increased by 42.8% from GH¢6,596,320 in 2006 to GH¢9,418,548 in 2007. This increase was due mainly to a 60.1% increase in Personnel Emoluments and 55.5% rise in Service Activity.

411. The University recorded a deficit of GH¢228,643 for the year under review, compared to a deficit of GH¢319,673 in 2006.



Financial Position412. Table 46 shows the movement in the financial position for the University.

Table 46: Balance sheet as at 31 December 2007 2007GH¢

2006GH¢

% Change

Non-Current Assets 20,763,957 16,054,195 29.3Current Assets 1,988,945 1,930,890 3.0Current Liabilities 716,763 943,861 (24.1)Net Current Assets 1,272,182 987,029 28.9Net Assets 22,036,139 17,041,224 29.3Current Ratio 2.8:1 2.1:1

413. Non-Current Assets increased by 29.3% from GH¢16,054,195 in 2006 to GH¢20,763,957 in 2007. This was as a result of a significant increase in work-in-progress.

414. Current Assets increased marginally by 3.0% from GH¢1,930,890 in 2006 to GH¢1,988,945 in 2007.

415. Current Liabilities reduced by 24.1% as a result of the net effect of a decrease in creditors and accruals by GH¢487,175 and an increase in overdraft by GH¢260,077.

Net Current Assets and Net Assets rose by 28.9% and 29.3% respectively. The Current Ratio of 2.8:1 is favourable as it indicates the University can meet its short-term liabilities when they fall due.

MANAGEMENT ISSUESBank overdraft416. We noted that, the University did not have overdraft facilities with the banks but the underlisted bank accounts showed overdrawn balances.



Bank A/c No. Amount (GH¢)

GCB R/M 1401 1,354.92GCB Recurrent 1402 282,199.67GCB Miscellaneous 1405 10,001.47SG-SSB Staff Loan 1404 771.94

417. This implied that the accounts were not effectively monitored and the banks could dishonour cheques issued by the University and thus the University could incur high bank charges.

418. We recommended to Management that, the bank accounts should be effectively managed to ensure that they are not unduly overdrawn.

Sundry debtors419. We observed that, the University made a total deposit of GH¢6,000 with Bordis Company (GH¢4,000) on 3 February 2007 and Deliman (GH¢2,000) on 9 October 2007. However, the companies encountered operational difficulties and were unable to deliver. This implied that, the University might lose the monies if the companies fold up.

420. We recommended that immediate steps be taken to recover the amounts involved.

421. Management accepted the recommendation and responded that follow-up reminders have been written and forwarded to the companies involved.



MINISTRY OF EDUCATION, SCIENCE AND SPORTSDEVELOPMENT OF SENIOR SECONDARY EDUCATION

PROJECT (DSSEP) ADF CREDIT NO. 2100150007215 AND GRANT NO. 2100155002033

Introduction422. This report relates to the audited accounts of the Development of Senior Secondary Education Project (DSSEP) of Ministry of Education, Science and Sports for the year ended 31 December 2008

Operational results423. Presented in Table 47are the performance details.


US$2007US$

% Change

Receipts Transfers 3,795,440 5,137,890 (26.1)Grant Income 1,315,964 - -Interest Income 2,386 252 846.8Total Receipts 5,113,790 5,138,142 (0.5)Payments Goods 1,213 3,249 (62.7)Civil Works 4,107,588 3,992,997 2.9Services 527,261 359,846 46.5Operating Costs 418,490 344,042 21.6Audit Fees 16,447 - -Total Payments 5,070,999 4,700,134 7.9Excess / (Deficit) of Income Over Expense

42,791 438,008 (90.2)

424. Total Receipts for 2008 was US$5,113,790 which showed a decrease of 0.5% over the previous year’s figure of US$5,138,142. The fall in receipts was as a result of non-contribution by the Government of Ghana during the period.

425. Total Payments for the year was US$5,070,999, an increase of 7.9% over the 2007 figure of US$4,700,134. This can be attributed an



increase of 46.5% and 21.6% in Services and Operating Costs respectively.

426. The year ended with a surplus of US$42,791 as against US$438,008 realised in 2007.

Financial positionTable 48 shows the balance sheet position as at 31 December 2008

Tale 48: Balance sheet as at 31 December 2008 Item 2008

US$2007US$

% Change

Current Assets 2,725,706 2,401,817 13.5Current Liabilities 1,280,849 999,751 28.1Net Current Assets 1,444,857 1,402,066 3.1Current Ratio 2.1:1 2.4:1

427. Current Assets increased by 13.5% from US$2,401,817 in 2007 to US$2,725,706 in 2008. The significant increase in Bank Balances from US$276,251 in 2007 to US$1,591,583 in 2008 accounted for the increase.

428. Current Liabilities also increased from US$999,751 in 2007 to US$1,280,849 in 2008, an increase of 28.1%. This was due to a rise in accrued project pre-finance by Government of Ghana and payables.

429. The Project recorded a current ratio of 2.1:1 and 2.4:1 in 2008 and 2007 respectively, indicating the Project’s ability to meet its short-term obligations as and when they fall due.

UNIVERSITY OF GHANA BUSINESS SCHOOL

Introduction430. This report relates to the audited accounts of University of Ghana Business School (UGBS) for the year ended 31 December 2008.



Operational results431. Details of the performance indicators are provided in the Table 49.


GH¢2007GH¢

% Change

IncomeGovernment Subvention 2,585,345 1,586,426 63.0Grant 23,776 5,713 316.2Internally Generated Funds 3,953,511 2,831,847 39.6Total Income 6,562,632 4,423,986 48.3ExpenditurePersonnel Emoluments 2,699,204 2,038,228 32.4Honorarium 843,348 485,158 73.8Travelling & Transport Expenses 278,723 197,741 41.0General Administrative & Other Expenses

829,083 668,818 24.0

Educational Expenses 488,256 214,547 127.6Residence Service 73,633 40,196 83.2Official Entertainment Expenses 292,248 149,724 95.2General Maintenance Expenses 838,153 253,926 230.1Total Expenditure 6,342,648 4,048,338 56.7Surplus 219,984 375,648 (41.4)

432. Total Income rose by 48.3% from GH¢4,423,986 in 2007 to GH¢6,562,632 in 2008. Government Subvention accounted for 39.4% of Total Income for the year, while Internally Generated Funds and Grants accounted for 60.2% and 0.4% respectively.

433. Total Expenditure also increased by 56.7% from GH¢4,048,338 in 2007 to GH¢6,342,648 in 2008. The increase was due mainly to increases in Personnel Emoluments, Honorarium, General Administrative and Other Expenses, General Maintenance Expenses and Educational Expenses.



434. The operations of the School ended with a surplus of GH¢219,984 (2007: GH¢375,648), a fall of 41.4% over that of the previous year.

Financial positionShown in Table 50 is the financial position as at 31 December 2008

Table 50 :Balance sheet as at 31 December 2008 Item 2008

GH¢2007GH¢

% Change

Current AssetsInvestments 2,791,780 2,498,587 11.7Inventory 157,327 76,578 105.4Accounts Receivable & Prepayments

370,758 412,967 (10.2)

Cash and Bank 147,200 37,159 296.1Total Current Assets 3,467,065 3,025,291 14.6Current Liabilities 268,420 46,631 475.6Net Current Assets 3,198,645 2,978,660 7.4

435. Total Current Assets went up by 14.6% from GH¢3,025,291 in 2007 to GH¢3,467,065 in 2008.

436. The Current Liabilities increased by 475.6% from GH¢46,631 in 2007 to GH¢268,420 in 2008.

EDUACTION SECTOR PROJECT (EDSEP)IDA CREDIT NUMBER 38650-GH

SECTOR CAPACITY BUILDING COMPONENT

Introduction437. This report relates to the audited accounts of Education Sector Project (EdSeP) (IDA Credit Number 38650-GH) Sector Capacity Building Component for the year ended 31 December 2008.

Operational results438. The Project made a surplus of US$90,640 in 2008 as compared with a deficit of US$67,415 in the previous year.



Comparative figures for the two years 2008 and 2007 are summarised in the Table 51:


US$2007US$

% Change

IncomeFunding 1,312,105 4,308,072 (69.5)Interest Income 1,245 817 52.4Sale of Bidding Documents 756 15,001 (95.0)Total Income 1,314,106 4,323,890 (69.6)ExpenditureCivil Works 999,317 1,260,794 (20.7)Goods 83,430 2,538,825 (96.7)Consultants Services & Training 85,236 505,024 (83.1)Operating Costs 54,660 85,873 (36.3)Exchange Loss 825 789 4.6Total Expenditure 1,223,466 4,391,305 (72.1)Surplus / (Deficit) 90,640 (67,415) 234.5

439. Total Income received reduced from US$4,323,890 in 2007 to US$1,314,106 in 2008, representing a decrease of 69.6%. This was attributable to reductions of 69.5% and 95.0% in Funding and Sale of Bidding Documents respectively.

440. Total Expenditure also reduced by 72.1% from US$4,391,305 in 2007 to US$1,223,466 in 2008.

Financial positionTable 52 provides the financial position as at 31 December 2008


US$2007US$

% Change

Current Assets 885,931 660,960 34.0Current Liabilities 333,095 198,764 67.6Net Current Assets 552,836 462,196 19.6Current Ratio 2.7:1 3.3:1



441. Current Assets increased by 34.0% from US$660,960 in 2007 to US$885,931 in 2008. This was due to increase in Bank Balances.

442. Current Liabilities also increased by 67.6% from US$198,764 in 2007 to US$333,095 in 2008.

443. The liquidity position as depicted by a Current Ratio of 2.7:1 (2007: 3.3:1) shows that the Project can meet its short term obligations as and when they fall due.

MANAGEMENT DEVELOPMENT AND PRODUCTIVITYINSTITUTE (MDPI)

Introduction444. This report is on the audited accounts of Management Development and Productivity Institute (MDPI) for the year ended 31 December 2006.

Operational results445. The Institute’s performance indicators for the period is provided in Table 53.

Table 53: Income statement for 2006 Income 2006

(¢’million)2005

(¢’million)%

ChangeGovernment Subvention 2,817.0 2,493.8 13.0Internally Generated Income 3,535.1 3,187.1 10.9Total Income 6,352.1 5,680.9 11.8ExpenditurePersonnel Emoluments 2,540.8 2,121.1 19.8Service Activities 1,051.4 1,428.6 (26.4)Administration 2,177.3 2,107.0 3.3Total Expenditure 5,769.5 5,656.7 2.0Surplus / (Deficit) 582.6 24.2 2,307.4



446. Total Income for the year rose by 11.8% from ¢5,680.9 million in 2005 to ¢6,352.1 million in 2006. This was due to an increase of 13.0% in Government Subvention and 10.9% in Internally Generated Income.

447. Total Expenditure also registered a marginal increase of 2.0% from ¢5,656.7 million in 2005 to ¢5,769.5 million in 2006.

448. The Excess of Income over Expenditure transferred to Accumulated Fund Account was ¢582.6 million in 2006 compared to ¢24.2 million in 2005. This represents a 2,307.4% increase over the previous year’s performance.

Financial positionProvided in Table 54 is the Institute’s balance sheet as at 31 December 2006

Table 54: Financial position as at 31 December 2006 2006

(¢’million)2005

(¢’million)%

ChangeNon-Current Liabilities 2,642.8 2,782.9 (5.0)Current Assets 4,574.7 3,536.1 29.4Current Liabilities 1,185.4 730.8 62.2Net Current Assets 3,389.3 2,805.3 20.8Net Assets 6,032.1 5,588.2 7.9Current Ratio 3.9:1 4.8:1

449. Non-Current Assets decreased by 5.0% from ¢2,782.9 million in 2005 to ¢2,642.8 million in 2006. The decrease was due to depreciation charges on the Fixed Assets.

450. Current Assets rose by 29.4% from ¢3,536.1 million in 2005 to ¢4,574.7 million in 2006. This was due to a 55% increase in debtors and prepayments, a 25% increase in treasury bill investment and a 21% increase in cash and bank balances.



451. Current Liabilities also increased by 62.2% within the year due mainly to 96.2% increase in Kumasi Office rent arrears and 109.1% increase in liability to the MDPI Savings Scheme.

452. Net Assets grew by 7.9% from ¢5,588.2 million in 2005 to 6,032.1 million in 2006.

453. The Current Ratio of 3.9:1 (2005: 4.8:1) indicated a favourable liquidity position of the Institute.

MANAGEMENT ISSUESStaff debtors454. We observed differences in the general ledger balances for staff debtors and supporting schedules. Examples are as follows:

Loan Balance per General Ledger

Balance per Supporting

Schedule

Difference

¢ ¢ ¢Car Loan 411,743,802 337,747,188 73,996,114Rent Advance 77,935,580 64,990,666 12,944,914Salary Advance 14,811,179 8,173,273 6,637,906Other Staff Loans 123,338,092 115,566,945 7,771,147Spare Loan 59,284,794 43,725,447 15,559,347Purchases for Staff 78,796,427 58,453,721 20,342,706

455. We also noted that, there was no adequate co-ordination between the payroll section and the general ledger section.

456. The implication is that, the figures for staff debtors in the financial statements might not be reliable.

457. We recommended that, payroll and general ledger sections should coordinate their activities and ledger balances should be investigated and agreed with supporting schedules.



MINISTRY OF INFORMATION

GHANA NEWS AGENCY Introduction458. This report is related to the audited accounts of the Ghana News Agency for the two-year period ended 31 December 2008.

Operational results459. GNA’s operational activities for the year ended with a surplus of GH¢69,244.57 as against GH¢60,775.67 recorded in 2007. This represented an increase of GH¢8,468.90 or 13.93% over the 2007 figure. Consequently, an amount of GH¢33,087.44 was transferred into the Consolidated Fund of the Government of Ghana. This amount fell short by GH¢2,195.50 or 6.22% of an amount of GH¢35,282.94 transferred, 2007. A summary of the performance indicators is provided in Table 55.


GH¢2007GH¢

%Increase(Decrease)

Government Subvention 1,254,427.50 1,135,038.83 10.5IGF from GNA Services 254,066.58 201,988.98 25.8Capital Grant Realised 20,044.00 - -Total Income 1,531,538.08 1,337,027.80 14.5ExpenditurePersonnel Emolument 770,318.89 678,005.91 13.6Administrative Expenses 459,212.51 455,129.53 0.9Service Activity Expenses 232,762.11 143,115.69 62.6Total Expenditure 1,462,293.51 1,276,252.13 14.6Excess Income Over Expenditure

69,244.57 60,775.67 13.9

460. Total Income went up by GH¢194,510.28 or 14.5% from GH¢1,337,027.80 in 2007 to GH¢1,531,538.08 in 2008 mainly due to an increase of 10.5% in Government subvention which rose from GH¢1,135,038.82 in 2007 to GH¢1,254,427.50.

461. Total Expenditure also increased by GH¢186,041.38 or 14.6%, from GH¢1,276,252.13 in 2007 to GH¢1,462,293.51 in 2008.



Personnel Emolument increased by GH¢92,312.98 or 13.6% from GH¢678,005.91 in 2007 to GH¢770,318.89 in 2008. Service Cost also rose by GH¢89,645.42 or 62.6% from GH¢143,116.69 in 2007 to GH¢232,762.11 in 2008.

Financial positionTable 56 shows the Agency’s financial position for the period

Table 56: Financial position as at 31 December 20082008

(GH¢)2007

(GH¢)%

ChangeFixed Assets 590,550.29 569,476.92 3.7Current Assets 261,260.36 272,675.69 (4.2)Current Liabilities 56,692.90 107,147.99 (47.1)Net Current Assets 204,567.46 165,527.70 23.6Net Assets 795,117.75 735,004.62 8.2Current Ratio 4.6:1 2.5:1

462. Fixed Assets increased from GH¢569,476.92 in 2007 to GH¢590,550.29 in 2008; an increase of GH¢21,073.37 or 3.7%. The increase in Fixed Assets was due to the acquisition of Motor vehicle amounting to GH¢47,000 and Furniture and fittings of GH¢17,215.

463. Current Assets decreased by GH¢11,415.60 or 4.2% to GH¢261,260.36 in the year under review from the 2007 amount of GH¢272,675.69. Current Liabilities also registered a decrease of GH¢50,455.09 or 47.1% from the previous year’s figure of GH¢107,147.99 to GH¢56,692.90 in 2008 due to settlement of the Agency’s indebtedness to Graphic Corporation and New Times Corporation during the year.

464. The liquidity position as measured by the current ratio of 4.6:1 (2007: 2.5:1) indicates the Agency’s ability to meet its short term obligations as and when they are due.



Accumulated fund 465. The balance of GH¢735,004.62 as at 2007 increased by 8.2% to GH¢795,117.75 in 2008. This resulted from the Income Surplus of GH¢69,244.57 realised during the year under review.

MANAGEMENT ISSUES

Overdue salary advance: GH¢ 2,487.94466. A total salary advance of GH¢3,206.21 was granted to eight employees of the Agency between February 1998 and November 2006. We however noted that the last date a recovery was made was in August 2007 because these officers had vacated their post, resigned or died. As a result, only GH¢718.27 representing 22.4% had been recovered as at the time of writing this report. An amount of GH¢2,487.94 was yet to be recovered.

467. The lapse was due to management’s failure to keep records of all personnel entitlements in a form that ensures all deductions are made at the appropriate time and no overpayments are made as enjoined by Regulation 292 (1a&b) of L.I. 1802

468. Management’s inaction to promptly recover the advances could lead to losses thereby denying other staff members of the facility. Additionally, the salary advance figure reported in the balance sheet of the Agency could be overstated because the amounts might not be recovered.

469. We recommended that management should contact the next of kin of the deceased and pursue the other separated staff for recovery of the advanced sum. Failing this, the responsible officials should be surcharged for negligence of duty. We also advised management to ensure that proper personnel records are kept and infuture, debts of separated employees are set-off against any entitlements.



470. Management indicated that the Board’s approval would be sought for the write-off of GH1,959.62 owed by deceased staff. However, Mr Richard Kwagyir had been written to, to refund GH528.32 he owes.

Overdue adverts debts – GH¢20,892.02 471. Our review however disclosed that 44 clients owed the Agency a sum of GH¢20,892.02 for periods ranging between 2 to 12 years for adverts placed on their behalf.

472. In a further development we noted that 12 of the debtors had no postal addresses to facilitate debtor circularisation. Furthermore, our circularisation of 29 out of the remaining 32 with addresses yielded only two responses; Drobo Traditional Council and Public Services Commission, of which the latter confirmed its indebtedness and had since settled the amount.

473. The overdue debts were as a result of the absence of proper policy on granting of credit facilities on adverts placed on behalf of customers with the print media. Additionally, due care was not taken to ensure that accurate contact addresses were obtained to facilitate follow-up and recovery.

474. The anomalies could result in the debts going bad which would deny the Agency of much needed revenue for its operations.

475. We therefore recommended that management should take utmost care in granting of credits and hold officers liable for breach of the conditions. We also advised management to establish the genuineness or otherwise of the debt stated above and pursue recovery as soon as possible.

Overdue subscription debt – GH¢66,346.92 476. GNA failed to secure clients’ commitment after the expiration of their initial agreement before supplying them with bulletins. This practice resulted in 85 clients being indebted to GNA



to the tune of GH¢66,346.92 for periods exceeding two years. Our audit also revealed that the Business Development Unit did not send out periodic demand notices to clients

477. Furthermore, we had only four responses from 48 debtors circularised. All four, namely the Embassy of Japan, Office of the President, Ministry of Foreign Affairs and Ghana Armed Forces however disputed the existence of subscription agreement between them and the Agency. The foregoing situation could lead to loss of funds as the Agency stood the risk of not recovering the debt.

478. We recommended that management should adopt a proactive way of transacting business by ensuring that Subscription Agreement Forms are sent out in the last quarter of every year to enable clients renew their subscription for the ensuing year. The Business Development Unit should also submit regular statements of accounts to clients and elicit timely settlement by introducing cash discounts.

NEW TIMES CORPORATIONIntroduction479. This report relates to the audited accounts of New Times Corporation for the financial year ended 31 December 2008.

Operational results480. Summarised in Table 57 is the Corporation’s income statement for the period.


GH¢2007GH¢

% Change

IncomeTurnover 5,271,580 4,371,094 20.6Cost of Production 3,164,422 2,524,888 25.3Gross Profit 2,107,158 1,846,206 14.1Administrative & General Expenses

1,384,797 1,474,545 (6.1)

Net Operating Profit 722,361 371,661 94.4



Other Income 45,648 99,211 (54.0)Net Profit / Loss before Tax 768,009 470,872 63.1

481. The Turnover of the Corporation increased by 20.6% from GH¢4,371,094 in 2007 to GH¢5,271,580 in 2008. Cost of Production also increased by 25.3% to GH¢3,164,422 (2007: GH¢2,524,888) resulting in a 14.1 increase in Gross Profit. Administrative and General Expenses for the year decreased by 6.1% to GH¢1,384,797 from the 2007 figure of GH¢1,474,545. The year’s trading activities ended with a Net Profit before tax of GH¢768,009 and this represents an increase of 63.1% over the previous year’s performance.

Financial positionThe financial position of the Corporation for the period is shown in Table 58

Table 58: Assets and Liabilities as at 31 December 2008 Item 2008

GH¢2007GH¢

% Change

Non-Current Assets 2,128,732 2,214,136 (3.9)Current Assets 3,760,200 2,001,680 87.9Current Liabilities 3,462,097 2,356,559 46.9Net Current Assets 298,103 (354,879) 184.0Net Assets 2,426,835 1,859,257 30.5Current Ratio 1.1:1 0.8:1

482. The Corporation’s Non-Current Assets decreased by 3.9% from GH¢2,214,136 in 2007 to GH¢2,128,732 in 2008. The decrease was as a result of disposal of Furniture & Fittings, Plant & Machinery and Motor Vehicles, as well as depreciation provisions for the year.

483. Current Assets which stood at GH¢2,001,680 in 2007 increased by 87.9% to register GH¢3,760,200 in 2008. This was as a result of 746.0% increase in Stocks, 48.1% in Trade Debtors, 76.8% in Staff Debtors and 53.1% in Cash and Bank Balances.

484. Current Liabilities recorded an increase of 46.9% from GH¢2,356,559 in 2007 to GH¢3,462,097 in 2008. The significant



increase was mainly due to 3,209.3% increase in Trade Creditors from GH¢31,016 to GH¢1,026,398.

485. The liquidity status of the Corporation as depicted in the Current Ratio of 1.1:1 (2007:0.8:1) is unhealthy. This implies that the Corporation may not be in a position to meet its short-term obligations as and when they fall due.

MANAGEMENT ISSUES

Late submission of annual accounts486. The Corporation could not submit its 2008 accounts for audit even by the end of August 2009. Explanations and defenses were put on computer problems. These explanations cannot absolve the Corporation from complying with legal provisions.

487. Also, the Revenue Act 2000, Act 592; imposes penalties on organisations that fail to submit accounts by the end of April of each year.

488. We recommended to Management that, the Corporation should endeavour to submit its Annual Accounts on time. The Internal Revenue Service for instance could impose a penalty of GH¢12.00 for each day the accounts are not submitted effective from 1 May in each year until the accounts are submitted. Imposition of such a pecuniary penalty could be a drain on the finances of the Corporation.

Standard of accounting489. The standard and level of accounting within the Corporation needs improvement. Ledger postings were not checked, Bank Reconciliation Statements were not verified and account balances were not monitored.

490. Some of our observations in the final trial balance disclosed discrepancies in the figures presented. The detail is provided below:



In the prepayment account was an amount of GH¢95,544.00 described as 5% withholding tax deposit. The team could not sight the names of the organisations that had deducted these withholding taxes and for which services the taxes were deducted.

Similarly, in the sundry creditors account was an amount of GH¢19,122.00 described as withholding tax payable but no list was provided to cover these unpaid taxes.

In the trial balance was a huge amount of GH¢719,312 described as GCB Regional Control. However, officials were not able to explain what this figure represented. We were however asked to use this figure to reduce the Corporation’s Newspaper Debtors.

The Corporation was not in a position to know exactly its debtors nor the age of these do debts because no debtors list exists to support the authenticity of the debtors figure shown in the accounts.

The Corporation had no Accounting Manual in use.

The Corporation did not maintain a Fixed Assets Register

491. We recommended that, the Corporation should as early as practicable design an Accounting Manual for use. An Accounting Manual serves as a source of information and authority in providing guidance and directives as to the approved and recommended procedures to be followed.

492. We further recommended that, the Corporation should maintain a Fixed Assets Register.



Administration of accountable imprest493. We noted that there were no policy guidelines governing the administration of Staff Accountable Imprest. Also, members of staff were advanced additional imprests though the previous ones granted had not been retired.

494. As at 31 December 2008, the outstanding accountable imprest at the Head Office amounted to GH¢47,886.00 whereas that of the Regions stood at GH¢5,775.00. Some of the imprests were granted as far back as 2000. It was also noted that, these apparently irretrievable debts were classified and described in the accounts as Cash On Hand.

495. We urged Management and the Board to as a matter of urgency institute a policy document on accountable imprest that specifies the period within which imprest taken should be retired. Further, there should be a separate file for all payment vouchers covering accountable imprest.

496. We also recommended that, Management should immediately issue out letters to all affected staff to immediately refund the money and also review the existing debt so as to write off imprest granted to employees who were no longer with the Corporation.

MINISTRY OF WATER RESOURCES, WORKS AND HOUSING

ARCITECTURAL AND ENGINEERINGSERVICES LIMITED

Introduction497. This report relates to the audited accounts of Architectural and Engineering Services Limited for the year ended 31 December 2008.



Operational Results498. Total Income, made up of Fees and Other Income, went up from GH¢3,895,438 in 2007 to GH¢5,157,543 in 2008, an increase of 32.4%. Table 59 shows the performance components for the review period.


GH¢2007GH¢

% Change

IncomeFees 4,932,803 3,700,823 33.3Other Income 224,740 194,610 15.5Total Income 5,157,543 3,895,438 32.4ExpenditureGeneral & Administrative Expenses 4,341,639 3,393,114 28.0Total Expenditure 4,341,639 3,393,114 28.0Profit 815,904 502,324 62.4

499. Total Expenditure increased from GH¢3,393,114 in 2007 to GH¢4,341,639 in 2008, registering a 28.0% growth. This was due to a rise in Staff Salaries and related Costs from GH¢1.8 million in 2007 to GH¢2.1 million in 2008.

500. The Company’s operations for the year ended with a profit of GH¢815,904 as against a profit of GH¢502,324 in 2007, representing an increase of 62.4%.

Financial PositionProvided in Table 60 is the financial position as at 31 December 2008


GH¢2007GH¢

% Change

Fixed Assets 11,357,041 473,574 2,298.2Capital Work-In-Progress 141,566 11,307 1,152.0Total 11,498,607 484,881 2,271.4Current Assets 3,037,992 1,905,206 59.5Current Liabilities 1,916,545 1,551,326 23.5



Net Current Assets 1,121,447 353,880 216.9Net Assets 12,620,054 838,761 1,404.6Current Ratio 1.6:1 1.2:1

501. Total Fixed Assets rose from GH¢473,574 in 2007 to GH¢11,357,041 in 2008 to record an increase of 2,298.2%. The increase was largely due to revaluation of land and buildings to the tune of GH¢11.1 million.

502. Current Assets increased by 59.5% from GH¢1,905,206 in 2007 to GH¢3,037,992 in 2008. This was due to a significant increase in Stocks and Clients’ Balances.

503. Current liabilities also increased by 23.5% to GH¢1,916,545 (2007: GH¢1,551,326)

504. Current Ratio improved from 1.2:1 in 2007 to 1.6:1 in 2008. This indicated that the Service might not be able to meet its short-term financial obligations as and when they fall due.

MANAGEMENT ISSUES

Non-compliance with Social Security and tax laws505. We observed that, the total amount owed to IRS (PAYE), VAT and SSNIT increased from GH¢974,197 in 2007 to GH¢1,109,777 in 2008 and this amount remained outstanding as at time of audit. The table below shows the details:

Item 2008GH¢

2007GH¢

% Change

VAT 523,749 405,926 29.0SSNIT 156,754 154,031 1.8IRS (PAYE) 429,274 414,240 3.6Total 1,109,777 974,197

506. We pointed out to management that since these were statutory payments, failure to pay which attracts penalty would in turn increases cost. Management explained that the increases were



mainly due to non-payment of fees by Ministries, Government Departments and Agencies.

507. We advised that the Company should take steps to settle all the arrears and desist from carrying huge balances on these accounts from year to year.

Title deeds for landed properties508. We noted once again that, title deeds for immovable properties with which the company was set up had still not been obtained. We drew management on the need to obtain title documents for immovable properties of the Company since, the continued absence of this relevant implied that, there is no evidence of ownership of the properties.

509. We reiterated our recommendation that Management should expedite the process of perfecting title to the landed properties.

Capital work-in-progress510. We did not see any progress of work regarding the construction of Guest Houses at Ho, Cape Coast and Bolgatanga among other projects; which have been at a standstill since 2003.

511. We advised management to complete one project in a year so that all the projects would be completed over a period.

COMMUNITY WATER AND SANITATION AGENCY –RURAL

WATER SUPPLY AND SANITATION INITIATIVE(RWSSI) – ASHANTI REGION

GRANT NUMBER 2100155003119

Introduction512. This report covers the audited accounts of Rural Water Supply and Sanitation Initiative (RWSSI) – Ashanti Region for the year ended 31 December 2008.



Operational Results513. The main source of income for the project was from the African Development Bank (AfDB), which amounted to US$3,188,392 representing 97.5% of the Total Income. The Other Incomes came from Government of Ghana (US$80,373) and Interest Income (US$229). Provided in Table 61 is the operational performance of RWSSI.

Table 61: Analysis of operational performance for 2008 and 2007Item 2008

US$2007US$

% Change

Funds ReceivedFund from AfDB 3,188,392 1,401,978 127.4GoG Contribution 80,373 159,848 (49.7)Other Income 229 178 28.7Total Income 3,268,994 1,562,004 109.3ExpenditureGoods 22,868 - -Services 538,135 695,870 (22.7)Civil Works 972,048 888,642 9.4Operating Cost 96,349 66,846 44.1Total Expenditure 1,629,400 1,651,358 (1.3)Surplus / (Deficit) 1,639,594 (89,354) 1,934.9

514. Total Funds Received for the year increased by 109.3% from US$1,562,004 in 2007 to US$3,268,994 in 2008 due to a 127.4% increase in funds from AfDB.

515. Total Expenditure dropped marginally by 1.3% due to a 22.7% drop in expenditure for Services.

516. The Project registered a surplus of US$1,639,594 in 2008 as against a deficit of US$89,354 in 2007, representing a reduction in the deficit of 1,935.0%.

Financial Position517. Table 62 is the financial position of the Initiative as at 31 December 2008.



TABLE 62: Financial position as at 2008 and 2007Item 2008

US$2007US$

% Change

Accumulated Project Expenditure 3,660,080 2,030,680 80.2Current Assets 1,682,444 78,558 2,041.7Current Liabilities 66 35,774 (99.8)Net Current Assets 1,682,378 42,784 3,832.3Net Assets 5,342,458 2,073,464 157.7

518. The Accumulated Project Expenditure increased by 80.2% from US$2,030,680 in 2007 to US$3,660,080 in the period under review.

519. Current Assets increased by 2,041.7% from US$78,558 in 2007 to US$1,682,444 in 2008 due mainly to an increase of 1,953.3% in the amount held in the AfDB Special Account – US Dollar & Cedi together with GoG Counterpart Funding – Cedi Account.

520. Current liabilities, however, decreased by 99.8% from US$ 35,774 in 2007 to US$ 66 as a result of settling funds borrowed from RWSP IV and the reversal of RWSP IV funds wrongly credited to Special Account.

521. Net Assets increased by 157.7% from US$2,073,464 in 2007 to US$5,342,458 in 2008.

MANAGEMENT ISSUES

Advances to Technical Assistants (TA’s) not properly accounted for522. We noted during our audit that, Management of the Ashanti Regional Office of the Community Water and Sanitation Agency had taken a decision during the year to advance money to the TA’s to ensure that the household latrines were constructed at a faster pace. We also noted that, per the financial records, further advances had been made to some of the TA’s without the earlier amounts being fully retired.



523. This implies that, the provisions of the Project Implementation Manual had not been complied with. Further, expenditure may be misstated if the advances have been utilised but not accounted for.

524. We recommended that, Management should ensure that the provisions of the Project Implementation Manual are adhered to. In the event of a change to the implementation arrangements, the decisions should be well documented and communicated to the African Development Bank.

PUBLIC SERVANT HOUSING LOAN SCHEME BOARD (PSHLS)

Introduction

525. This report covers the audited accounts of the Public Servants Housing Loan Scheme for the period 1 January 2007 to 31 December 2008.

Operational Results

526. Total revenue of the Board for the period under review amounted to GH¢91,357.12, an increase of 3.5% over the previous year’s figure of GH¢88,270.41. Total revenue comprised of Government Subvention and other Income. Other income rose by 69.9% from GH¢3,675 in 2007 to GH¢6,244.73 in 2008. The significant rise in other income was due to increases in valuation fees, sale of forms and legal fees.

527. Total expenditure also increased from GH¢105,299.10 in 2007 to GH¢112,614.76 in 2008, representing an increase of 6.9%. The increases in Service Activity and Personnel Emoluments accounted the rise in total expenditure.



528. The Board recorded an operational deficit of GH¢21,257.64 in 2008 against GH¢17,028.69 in 2007 resulting in an unfavourable increases of 24.8%. Details of the income and expenditure is presented in Table 63 below:

Table 63: Performance indicators for 2008 and 2007

Income 2008GH¢

2007GH¢

%Change

Government Subvention 85,112.39 84,595.16 0.6Other Incomes 6,244.73 3,675.25 69.9Total Revenue 91,357.12 88,270.41 3.5Less ExpenditurePersonnel Emolument 59,286.78 49,846.00 18.9Administration Expenses 28,736.77 31,172.35 (7.8)Service Activity 8,451.46 8,141.00 3.8Depreciation 16,139.75 16,139.75Total Expenditure 112,614.76 105,299.10 6.9Surplus/Deficit (21,257.64) (17,028.69) 24.8

Financial Position529. The summary of the financial position of the Board is presented in Table 64 below:

Table 64: Assets and liabilities as at 2008 and 20072008GH¢

2007GH¢

%Change

Fixed Assets 29,888.73 46,028.48 (35.1)Current Assets 3,549,170.81 3,315,104.60 7.1Current Liabilities 21,544.79 22,710.20 (5.1)Revolving Fund 3,289,980.44 3,049,630.93 7.9Net Assets 3,557,514.75 3,338,422.88 6.5Current Ratio 164.7:1 145.9:1

530. Fixed Assets dropped by 35.1% from GH¢46,028.48 in 2007 to GH¢29,888.73 in the year under review due to depreciation charged.



531. Current Assets which was made up mainly of Mortgage loan increased from GH¢3,315,104.60 in 2007 to GH¢3,549,170.81 in the year under review, a rise of 7.1% as a result of additional mortgage loans granted during the year.

532. Current liabilities representing unpaid Insurance deposit reduced by 5.1% from GH¢22,710.20 in 2007 to GH¢21,544.79.

533. Revolving Fund which is the main stay of the Board rose from GH¢3,049,630.93 in 2007 to GH¢3,289,980.44 as a result of additional grant of GH¢200,000 received from central government during the year and interest on mortgage loan capitalized.

534. The Board recorded a healthy liquidity ratio of 164.7:1 against 145.9:1 in the previous year.

MANAGEMENT ISSUES

Absence of internal auditor535. We noted that, the PSHLSB had no internal audit unit in contravention to Section 16 (1) of the Internal Audit Agency Act, 2003 (Act 658) which states that “there shall be established in each MDA, MMDA an internal audit unit which shall constitute a part of the MDA or MMDA.’’

536. The absence of an internal audit unit would not ensure the regular review of controls in order to promptly draw management’s attention to weaknesses identified for the necessary remedial action to be taken.

537. For sound financial practices and to enhance best management practices, the Executive Director accepted our recommendation to liaise with its Sector Ministry to set up an internal audit unit for the Board.



Defaulters in loan repayments – GH¢1,317,732.67538. We noted that 653 borrowers made up of 480 employees in active service and 142 pensioners have defaulted in their monthly repayment of a total amount of GH¢1,317,732.17 for periods ranging between four and 96 months,

539. The default was partly due to ineffective monitoring and recovery system adopted by management to detect breaks in repayments coupled with the inability of C&AG to effect the deduction as a result of system breakdowns.

540. This situation restricts the growth of the funds thereby limiting the availability of sufficient funds for granting of further loans to other applicants.

541. We recommended that management should strengthen the loan monitoring and recovery system of the Board so as to ensure that defaulters are promptly identified and made to repay their loans within the stipulated time.

Loans granted but not recorded – GH¢ 263,775.24542. Contrary to Section 23(1a) of PSHLB Degree 319 0f 1975 which states that “the Board shall cause proper accounts and other records in relation thereon to be kept”, we noted that an amount of GH¢263,775.24 advanced to 79 applicants in 2007 and 2008 were not recorded in any ledger accounts.

543. The failure of the Accountant to ensure compliance with the above stated regulation resulted in the anomaly that would render monitoring and reconciliation of repayments difficult. The lapse was also due to the manual system being operated as against the large number of borrowers.

544. We recommended that management should ensure that the records are up dated for our verification and also advised that the system should be automated.



Dishonoured borrowers’ cheques- GH¢ 12,209.44545. In accordance with the policy of the Board, repayment of loan and interest are to be made by monthly deduction from the salary of borrowers by the employer where the C&AG do not pay him.

546. Contrarily, management accepted post-dated cheques amounting to GH¢12,209.44 from four borrowers for the repayment of loans, which had as at the time of reporting been dishonored by their respective bankers.

547. The apathy of the borrowers towards loan repayments when allowed to continue could lead to decline in the growth of the fund thereby preventing other potential beneficiaries from accessing the fund.

548. We recommended that management should contact the affected personnel for recovery of the total amount of GH¢12,209.44.

Unpaid insurance claims- GH¢ 8,827.44

549. To safeguard the fund of the Board, borrowers are required to take up mortgage Insurance protection in which the insurer will under take to repay the entire balance on the accounts upon the death of the borrower.

550. An insurance company, Vanguard Assurance Company Limited which insured the loans of three beneficiaries failed to pay their outstanding balance of GH¢8,827.44 after their death though the borrowers had not defaulted in the payment of their insurance premiums. Below are the details.

Date of Name of Borrower Policy No. Amt.Application Outstanding

GH¢ 31/05/06 Michael Offei K. VL 123467 2,011.04



17/01/08 Peter Botchway 122400 2,174.21

28/05/08 John Teye 126252 4,642.19

551. We recommended that management should vigorouslypursue recovery of the claims from the Insurance Company.

MINISTRY OF HEALTH

FOOD AND DRUGS BOARD

Introduction552. This report is related to the audited accounts of the Food and drugs Board for period of 1 January 2005 to 31 December 2008.

MANAGEMENT ISSUES

Operating bank accounts without authority 553. FAR 47(3) enjoin any public officer seeking to open and operate any bank account to obtain authority from the C&AG.

554. Between 2002 and 2006, the Board however operated four cedi accounts and one dollar account with three private banks, namely, Ecobank, First Atlantic Bank and United Bank for Africa (UBA) without approval of the C&AG. We noted also that apart from bank statements, there were no records to authenticate total payments of GH¢859,022.85 and US$640,775.17 into and withdrawals of GH¢796,925.46 and US$629,725.81 from the accounts. The closing bank statement balances were; GH¢40,792.91 and US$7,170.50 with Ecobank and GH¢4,314 with First Atlantic Bank.

555. We further noted that, these accounts were not disclosed in the financial statements of the years reviewed because this information was omitted from the handing over notes of the former Chief Executive and former head of accounts.



556. We could therefore not determine whether the accounts were used in the furtherance of the authorised operations of FDB. Furthermore, C&AG would not be able to report on those accounts as required by the relevant provisions of the FAR.

557. We recommended that the signatories to the accounts should be held liable to account for the withdrawn sum of US$629,725.81 and GH¢796,925.40. We further recommended that the balance of GH¢40,792.91 and US$7,170.50 with Ecobank and GH¢4,314 with First Atlantic Bank as a matter of urgency be transferred into the Board’s designated account with Bank of Ghana and this office informed accordingly.

558. Management intimated that the opening and operation of the accounts are under investigation adding that it had written to the banks to transfer the balances on the accounts to the FDB Account at Bank of Ghana. Management further informed us that the First Atlantic Bank had transferred an amount of GH¢4,309.96 being the closing balance on the account into FDB account at Bank of Ghana.

Revenue from Tema Port not accounted for- GH¢35,400.00 559. We noted during our audit that in breach of Regulation 28(2 and 3) of FAR 2004 receipts not approved by the C&AG were issued for GH¢35,400.00 administrative charges collected at the Tema office of the Board. The amount, purportedly remitted to the Board’s Head Office was neither recorded in the cashbook nor lodged into any of the Board’s designated bank accounts.

560. The anomaly persisted because the Internal Audit Department was not diligent in its work. This has deprived the Board of financial resource that could have been used to enhance service delivery.

561. In response, the former head of Accounts intimated that the money was initially lodged in an account at Ecobank. However this account had been closed and all monies transferred to FDB’s account



at Bank of Ghana (BoG). Her assertion was not corroborated with any documentary evidence. She further stated that due to her transfer, the bank statement that was to be used in preparing the cash book and other related financial records had been misplaced and would be made available for audit examination when traced.

562. We recommended that the former head of Accounts immediately accounts for the amount or be held liable for a refund. To pre-empt revenue leakages, we recommended also that only C&AG’s approved receipts should be issued for collections.

563. Management accepted our recommendation for compliance.

Unaccounted IGF- US$191,566.00 and GH¢60,089.00564. We observed over and under banking of revenue collected during the period reviewed. We noted for instance that in January 2006, US$34,900.00 and GH¢61,623.50.00 revenue was collected; however payment to bank amounted to US$23,500.00 and GH¢63,008.50.00 resulting in underpayment of US$11,400.00 and excess payment of GH¢1,385.00.00 for the month.

565. By this mundis operandi, a sum of US$191,566.00 and GH¢60,089.41 of the Board’s IGF was neither banked nor accounted for as at 31 March 2007 in contravention of FAR 18 and relevant provisions of Ministry of Health’s Accounting, Treasury and Financial Reporting (ATFR) which provide that all IGF should be banked in gross daily.

566. The former head of accounts refunded GH¢30,000.00 of the amount in May 2007 leaving a balance of GH¢30,089.41 and US$191,566.00 as at the time of reporting. This situation, which was attributed to the ineffectiveness of the Internal Audit Department, deprived the Board of funds that could have been used to improve its operations.



567. We however did not agree to the former head of Accounts explanation that the amount involved was granted as loan to staff as the statement could not be substantiated.

568. We recommended that the former head of accounts should account for the outstanding balance of US$191,566.00 and GH¢30,000.00 and advised the Internal Audit Unit to improve their performance to prevent future recurrence.

569. Management stated that this issue was under investigation by the Bureau of National Investigation (BNI) and Serious Fraud Office.

Unsubstantiated payments- US$ 121,800 and GH¢26,170Regulation 39(2c) of L.I.1802 mandates the head of accounts of a

department to control the disbursement of funds and ensure that transactions are properly authenticated to show that amounts are due and payable.

570. Contrarily, our audit revealed that on 18 November 2005 and 18 July 2006, FDB made total payments of US$65,000.00 to MOH when the latter appealed for funds to support the National Health Forum held from 23 to 26 November 2005. Mrs. Emma O. Agyemang who supposedly received the funds failed to issue MOH official receipts to authenticate the payments and ensure accountability.

571. Our audit also revealed that some members of Parliament were allegedly paid a sum of US$29,150.00 by FDB as honouraria and travel allowances. The alleged payees did not acknowledge the payments. We were however informed by those Parliamentarians that neither they nor their authorised representatives had received any moneys from FDB.



572. Furthermore, a payment of US$2,000.00 received by Reverend Martey for a guest of the Board, Mr. Robert Koah, who was allegedly robbed, was not receipted.

573. In another development, two withdrawals in October 2005 and November 2005 totalling GH¢26,170.00 from UBA as well as US$25,650.00 from FDB’s Bank of Ghana account on 31 October 2006 purportedly for the payment of two Toyota Hilux vehicles from Diaby Leasing Company were not supported with payment vouchers, the payee’s invoices and receipts to substantiate the withdrawals.

574. As a result of the lapses, we could not confirm whether the monies were used for the intended purposes. For accountability of the funds, we recommended that the former head of Accounts and the former Approving officer should account for the payments of US$54,800 and GH¢26,170. We also recommended that in the absence of relevant documents to confirm the receipt of the amount of US$65,000 by MOH, Mrs Emma O Agyeman should be held liable and further requested Rev. Martey to account for the receipt of the amount of US$2,000.

575. Management referred our observation on the unacquitted sum of US$65,000.00 to the MOH whose Chief Director noted that action was being taken to obtain the related documents for audit.

576. We recommended that the payment of US$65,000 made to MOH should be properly acquitted immediately otherwise Mrs. Emma O. Agyeman should be held liable.

577. Mr. Robert Koah has subsequently acknowledged receipt of the $2,000.00 collected by Rev.J.Y. Martey

Over payment of allowances – GH¢141,874.45 578. Management paid GH¢400.00 and GH¢300.00 per sitting to the chairman and members of the governing board respectively and GH¢200.00 per sitting to members of committees of the Board instead of the approved rates of GH¢40.00 for the chairman, GH¢30.00 for



members of the governing board and GH¢20.00 for members of committees of the Board.

579. This resulted in an over payment of GH¢141,874.45 in sitting allowance which was a drain on the limited financial resource of the Board that could have been used to enhance its service delivery. It also contravened Regulation 2I of L.I. 1802, which requires the head of department or public organization to secure the efficient and effective use of appropriations under departmental control within the ambit of government policy and in compliance with any enactment, regulation or instructions issued under the authority of any enactment.

580. We recommended that the former Authorising and Approving officers should ensure recovery of the over paid sum from the former governing board and committee members and pay same into FDB’s account, failing which they should be surcharged We also advised management to adhere to directives in subsequent transactions.

581. Management responded that effort was being made to recover the amount.

Bloated personal emoluments – GH¢178,697.40 582. We observed that funds budgeted and released for the payment of salaries of FDB employees amounted to GH¢1,276,884.90 in 2006 and GH¢1,467,940.20 in 2007 whilst actual salaries paid during the review period was GH¢1,111,885.00 in 2006 and GH¢1,454,242.70 in 2007 resulting in the receipt of excess funds of GH¢178,697.40 for the two years.

583. The former Chief Executive and former head of accounts should be held liable to account for the excess receipt of GH¢178,697.40.

584. Management stated that the matter was under investigation.



Non retirement of imprest – US$88,348.80 and GH¢137,702.48 585. FAR 288 (1) provides, “all imprest shall be retired at the close of a financial year. Any imprest not retired shall be adjusted to a personal advance account in the name of the imprest holder”.

586. On the contrary, our audit revealed that amounts of US$88,348.80 and GH¢137,702.48 granted to officials of the Board for various purposes remained unaccounted as at the time of our audit. The irregularity noted was because Management failed to put in place measures that would ensure that the special imprests were retired immediately after the intended programmes were executed. We could therefore not authenticate whether the amounts were used for the intended purposes.

587. We advised management to ensure that the officers concerned retired their respective imprest immediately; otherwise the sum should be adjusted to their personal accounts. We also advised management to ensure the timely retirement of future imprests and prescribe sanctions to be applied on defaulters to serve as a deterrent to others.

588. Management assured us that measures would be instituted to curtail the recurrence of late retirement of imprest and had also written to the respective officers to retire their accountable imprest.

Non disclosure of non-tax revenue collected -$145,524.08 and GH¢75,887.45

589. Regulation 19(1) of L.I. 1802 states that “ a head of department shall fully disclose all Non- Tax Revenue collected, lodged or retained as part of the monthly report to the Minister of Finance required under regulation 2(j), with copies to the Controller and Accountant General (C&AG) and Auditor General”

590. However, we noted that out of $1,381,574.03 and GH¢737,405.20 generated as non-tax revenue by FDB in 2006, only $1,236,049.95 and GH¢661,517.75 was disclosed in reports to the



respective authorities stated above leading to a non-disclosure of $145,524.08 and GH¢75,887.45.

591. The Internal Audit Department’s failure to review and confirm the returns before submission to the stakeholders accounted for the anomaly. This situation could prevent the C&AG from reporting accurately on non-tax revenue generated for the state. It might also affect the fair allocation of government resources.

592. We recommended that management should improve its system of reporting on IGF by ensuring that the returns are checked by the Internal Audit Department for completeness before submission to stakeholders.


Unapproved investment 594. Our audit however revealed that from 29 January 2003 to 1 June 2005, management transferred US$300,000.00 of Internally Generated Fund into a staff welfare fund being managed by New World Investments Limited (now New World Renaissance Securities Limited). By November 2008 the investment yielded an interest of US$268,253.82 and GH¢120,000.00 which has since been partly disbursed for staff loans and payment of end of year bonus among others.

595. Management has therefore misapplied the invested funds by not seeking approval from the Minister of Finance as provided by the FAR 140.

596. Our audit further disclosed that out of the above stated interest, US$10,000 and GH¢35,000 could not be traced to any of the designated bank accounts of the Board and the fund balance stands at US$342,454.67 and GH¢21,564.94 as at 31 December 2008.



597. We recommended that management should seek approval from the Minister to authorise the transaction or disinvest the total investment. The former Chief Executive and head of Account should also account for the amount of US$10,000 and GH¢35,000.

598. Management informed us that it was pursuing recovery of the investment and any interest accrued.

Failure to transact business with VAT registered companies599. Section 30(2) of Financial Administration Act, 2003 (Act 654) states “except as determined by the Minister of Finance and subject to any other enactment, government stores shall be procured from only Value Added Tax registered persons.”

600. Contrary to the aforementioned provision of Act 654, we found that Classy Choice and Theogina Company Limited contracted to print materials amounting to GH¢36,325.00 for the Board were not VAT registered companies. Management’s failure to adhere to the Act led to the state losing an accrued tax revenue of GH¢5,448.75.

601. We recommended and management agreed that in future the Board should abide by all provisions of Act 654 in relation to its procurement dealings, failing which responsible officials would be surcharged for future losses.

Funds for programme during Ghana @ 50 celebrations –GH¢100,000.00602. MOH on 27 February 2007 advanced ¢1bn (GH¢100,000) to FDB to initiate activities in connection with a programme on the improvement of hygiene and cleanliness of public food sales outlets pending the release of funds by the Ghana at 50 Secretariat, the sponsors. We noted that the former head of accounts did not issue an official receipt in acknowledgement of the funds received; hence the money was not recorded in any cashbook.



603. Additionally, the money was lodged in the personal emolument and not operations or a separate account. We further observed that the money had not been used for the intended purpose and it reflected in the closing balance of the account.

604. In order not to misapply the funds as the celebrations are over, we advised management to acknowledge receipt of the money, transfer it into an appropriate account and seek directives from MOH as to whether to refund it or use it for the purpose for which it was advanced.

605. Management agreed to seek further directives from MoH on utilisation of the funds.

VAT/NHIL payments without relevant invoices – GH¢ 35,325.61

606. Regulation 19(1) of Value Added Tax Regulation states “...a taxable person shall on supply of taxable goods issue to a customer a VAT invoice…”

607. We noted during our audit that the Accountant failed to obtain VAT/NHIL invoices from 20 companies to support payments which included VAT/NHIL charges of GH¢35,325.61. By this omission the companies were not bound to remit the VAT/NHIL amount to the VAT Service.

608. As this could result in loss of tax revenue to the state, we recommended that management should ensure that the VAT/NHIL invoices are obtained from the companies concerned or the amount recovered from them. The Accountant should in future obtain VAT/NHIL invoices for such payments.

609. Management accepted our recommendation.



Piecemeal procurement – GH¢808,955.60610. Section 21(5) of the Public Procurement Act (PPA), 2003 (Act 663) provides that a procurement entity should not divide a procurement order into parts or lower the value of a procurement order to avoid the application of the procedures for public procurement.

611. Contrarily, our review revealed that in 2005, the printing of various materials amounting to GH¢800,000.00 from HIPC funds was not only fragmented but payment vouchers for GH¢746,060.30 of the procurement were yet to be presented for audit as at the time of reporting. We were also not provided with a distribution list to enable us verify whether the various printed material were actually procured and used in the interest of the Board.

612. Additionally, in 2007, management fragmented the procurement of laboratory chemicals valued at GH¢8,955.60 from Labsstheaird into seven transactions.

613. By this practice, the above restrictive clause of the PPA was flouted and the unapproved procurement method used did not provide transparency, competitiveness and fairness in the award of the contract.

614. At the exit conference, the storekeeper, Mrs Mary Anfoh-Williams informed us that she was forced by the former head of accounts Ms Genevieve Nelson and former Chief Executive Mr. E.K Agyarko to sign the Store Receipt Advice (SRA) for the printed materials before the goods were delivered. She also added that she was not given copies of the Local Purchase Order hence her inability to confirm whether quantities delivered corresponded with the order made.

615. We recommended that management should furnish us with the distribution list for verification and immediately submit the outstanding payment vouchers of GH¢746,060.30 for audit, otherwise



the former Authorising and Approving officers should account for the payments. In view of the revelations, we advised management to investigate further and take the necessary action and in future the storekeeper should be given copies of LPO for confirmation of orders.

616. Management stated that the matter was under investigation.

PHARMACY COUNCIL Introduction617. This report covers the audited accounts of the Pharmacy Council for the year ended 31 December 2008

Operational results618. Total income for the year under review amounted to GH¢1,903,209.50 as compared with the previous year’s amount of GH¢1,105,220.00, thus, registering an increase of GH¢797,989.50 or 72.2%. This was due to increases in the Internally Generated Funds (IGF) and Government Subvention. IGF increased by GH¢369,357 or 55.5% from GH¢665,541 in 2007 to GH¢1,034,898 in 2008 and Government Subvention also increased by 103.8% from GH¢417,030 in 2007 to GH¢849,881. Table 65 depicts the performance indicators for the period under review.

Table 65: Performance indicators for 2008 and 2007Income 2008 2007 % increase/

DecreaseInternally Generated Fund (IGF)

1,034,898.35 665,541.00 55.5

Government of Ghana (GOG) 849,881.15 417,030.00 116.7Donor Pool Fund (DPF) 18,430.00 22,649.00 (18.6)Total Income 1,903,209.50 1,105,220.00 72.2Personal Emolument (PE) 823,853.15 402,821.80 104.5Administration Activity 536,509.13 404,138.00 32.8Service Activity 421,758.51 261,809.00 61.1Investment Activity 119,618.98 22,089.75 441.5Total Expenditure 1,901,739.77 1,090,858.55 74.3Surplus/Deficit 1,469.73 14.361.45 (89.8)



619. Total Expenditure for the year under review amounted to GH¢1,901,739.77 as against GH¢1,090,858.55 recorded in 2007. This showed an increase of GH¢810,881.22 or 74.3% over the previous year’s expenditure. This was largely due to a sharp increase in Personal Emolument by GH¢421,031.35 or 104.5% from GH¢ 402,821.80 in 2007 to GH¢823,853.05 in 2008. This was occasioned by the fact that the year under review saw the adoption of the New Health Sector Salary Structure effective January 1, 2007 and the consequent payment of all the 2007 salary arrears in the year under review.

620. Service activity expenditure also rose from GH¢261,809 in 2007 to GH¢421,758.51; an increase of GH¢159,949.51 or 61.1%.

621. The Council’s operations for 2008 ended with an excess income over expenditure of GH¢1,469.73 compared with GH¢14,361.45 recorded in 2007.

Financial position622. Current assets for the year under review amounted to GH¢52,480.25 as against GH¢42,046.38 in 2007; an increase of GH¢10,433.87 or 24.8% in 2008. Current assets for 2008 were made up of bank balances of GH¢6,207.79 and account receivables of GH¢42,272.46.

623. Current liabilities stood at GH¢20,131.07 at the end of 2008 registering an increase of GH¢8,964.14 or 80.3% over the year 2007 amount of GH¢11,166.93.

624. The liquidity position as depicted by a Current Ratio of 2.6:1 (2007: 3.8:1) shows that the Council’s can meet its short term obligations as and when they fall due.



NURSES AND MIDWIVES’ COUNCIL OF GHANA

Introduction625. This report relates to the accounts of the Nurses and Midwives Council for the year ended 31 December 2008.

Operational results626. The Council recorded an excess income of GH¢482,035.12 as against GH¢529,302.54 recorded in 2007, representing a decrease of 8.9% in 2008. Presented in Table 66 are the comparative income and expenditure for the two years.

Table 66: Comparative income and expenditure for 2008 and 2007Items 2008

GH¢2007GH¢

% Change

Total Income 2,260,227.23 1,122,521.59 101.4Less ExpenditurePersonal Emoluments 605,066.78 131,965.69 358.5Admin Activities 302,617.80 188,089.98 60.9Service Activities 870,507.53 273,163.39 218.7Total Expenditure 1,778,192.11 593,219.05 199.8Excess of Income/Expenditure 482,035.12 529,302.54 8.9

627. Total income of the Council rose by 101.4% from GH¢1,122,521.59 in 2007 to GH¢2,260,227.23 in 2008. Internally generated Fund increased by GH¢771,193.41 or 90.5% from GH¢852,137.00 in 2007 to GH¢1,623,330.41 in 2008. Government Subvention also increased by GH¢476,465.88 or 299.7% to GH¢635,435.37 (2007: GH¢158,967.49). Donor Fund receipts however, declined by 98.7% to GH¢1,463.45 (2007: GH¢110,072.10).

628. Total expenditure of NMC also increased by 199.8% from GH¢593,291.05 in 2007 to GH¢1,778,192.11 in the year under review. This was mainly as a result of the payment of salary arrears to staff of the Council with effect from January 2006 to March 2008 in addition to the new salaries paid in the year.



629. Service Activity expenditure increased by 218.7% from GH¢273,163.38 to GH¢870,507 in 2008. The increase was mainly due to a 200.2% increase in Training expenditure from GH¢169,124.36 in 2007 to GH¢507,732.58 in the year under review.

Financial position

Below in Table 67 is the financial position of the Council for the two

comparative years.

Table 67: Financial position as at 2008 and 2007

2008 GH¢

2007GH¢

% Change

Fixed Assets 242,929.41 171,351.58 41.8Current Assets 1,277,627.63 867,170.34 47.3Current Liabilities - -Net Assets 1,520,557.04 1,038,521.92 46.4

630. The Council’s fixed assets appreciated by 41.8% from GH¢171,351.58 in 2007 to GH¢242,929.41 in 2008 due to the acquisition of motor vehicles and office equipment for new offices established in the northern sector of the country.

631. Current Assets also increased by 47.3% to 1,277,627.63 (2007: 867,170.34) mainly as a result of increase stock of stationery and bank balance.

632. Net Assets of the Council thus increased by 46.4% from GH¢1,038,521.92 to GH¢1,520,557.04.

MANAGEMENT ISSUES

Unauthorised use of IGF633. Though we requested, management could not provide us with documentary evidence authorizing the use of the Council’s IGF amounting to GH¢311,664.46 out of GH¢1,623,330.41 generated to



purchase 10 vehicles instead of paying the total revenue into the Consolidated Fund.

634. Management’s action, which contravened Regulation 17(b) of L.I 1802 impaired MoFEP’s ability to monitor IGFs’ of the state and also denied the government of expected revenue to undertake development programmes.

635. Much as we agreed with management that the Council’s budgetary allocation might not meet all its requirements, we recommended that the use of IGF must be considered only after obtaining the required approval.

636. We advised management to seek approval from MoFEP to retain its IGF in order to regularise the transactions.

ST. JOHN’S AMBULANCE

Introduction637. This report relates to the audited accounts of St. John’s Ambulance for the four-year period of 1 January 2005 to 31 December 2008

Operational results638. Total income for 2008 of GH¢73,924.06 was 65.4% less than the amount of GH¢213,565.68 recorded for 2007. This was mainly due to a fall in all the income components.

639. Total subvention for 2008 did not include funds for Personal Emoluments as the Controller and Accountant General took over the payment of Salaries hence the 49.7% decrease in Government Subvention over that of 2007.

640. Expenditure in all account areas was reduced resulting in a 63.5% decrease in total expenditure from GH¢205,214.28 in 2007 to GH¢74,809.63 in 2008.



641. Operations for 2008 thus ended with a deficit of GH¢885.57, compared to a surplus of GH¢8,351.40 in 2007. Table 68 below summarises operations for 2007 and 2008.

Table 68: Income statement for 2008 Account Area 2008

GH¢2007GH¢

% IncreaseDecrease

IncomeSubvention 54,789.88 108,827.28 (49.7)DPF - 6,293.95IGF 8,061.62 20,260.70 (60.2)Others 6,144.40 48,303.13 (87.3)Transfer (St John, UK) 4,928.16 29,880.62 (83.5)Total Income 73,924.06 213,565.68 (65.4)ExpenditureSalary & Allowances 204.30 54,174.46 (99.6)Office Expenses 25,844.68 32,146.47 (19.6)Travelling & Transport 11,774.25 18,771.20 (37.3)Training & Conference 36,986.40 100,122.15 (63.1)Total Expenditure 74,809.63 205,214.28 (63.5)Surplus (Deficit) (885.57) 8,351.40

Financial Position642. St John Ambulance’s Statement of Assets and Liabilities as at 31 December 2008 showed a current assets of GH¢21,622.40 compared with current assets of GH¢22,507.97 at the end of 2007. A decrease of GH¢885.57 or 3.9%.

MANAGEMENT ISSUESEstablishment law643. The establishment law which regulates the existence and operations of the St. John Ambulance (Ghana) enacted in 1959 did not provide any direction or mandate in the following areas:

(i) governance and management structure;

(ii) membership or representation on any such structure in (i) above;



(iii) capacity for the acquisition and application of financial and other resources; and

(iv) accounting, financial reporting and auditing requirements.

644. In our opinion, the enabling enactment did not provide adequate background or authorisation for the transactions and operations of the St. John Ambulance (Ghana) in contemporary times.

645. We sighted a draft amendment law which, we were informed was submitted to the Legal Department of the Ministry of Health (MOH) in 2007 for consideration and further action. Management confirmed that it was monitoring the progress of the draft law at the Ministry.

646. We advised management to liaise with the appropriate authorities for early action on a revised enabling enactment.

GHANA AIDS COMMISSIONMULTISECTORAL HIV/AIDS PROGRAMME (MSHAP)

Introduction647. This report relates to the audited accounts of Ghana Aids Commission – Multi-sectoral HIV/AIDS Programme (MSHAP) for the year ended 31 December 2008.

Operational Results648. Operations for the year closed with a surplus of US$263,796 compared with a deficit of US$209,256 in 2007. Presented in Table 69 are the performance indicators for the period reviewed.



Table 69: Income Statement for 2008 2008US$

2007US$

%Change

IncomeReceipts from Donors 8,633,996 9,248,580 (6.6)Government of Ghana Funds 857,201 328,875 160.6Other Income 77,239 66,263 16.6Total Income 9,568,436 9,643,718 (0.8)ExpenditureOperating & Project Management Cost 2,637,948 3,709,506 (28.9)Capital Expenditure 158,098 23,012 587.0Sub. Projects 6,508,594 6,120,456 6.3Total Expenditure 9,304,640 9,852,974 (5.6)Surplus/(Deficit) 263,796 (209,256) 226.1

649. Although GoG Funds to the programme increased by some 160.6% from US$328,875 in 2007 to US$857,201 in the year under review. Receipts from Donor, the major contributor to the programme however dropped by some 6.6% to US$8,633,996 (2007: US$9,248,580) thus resulting to a marginal decrease in Total Income of 0.8% to 9,568,436 (2007: 9,643,718).

650. Total Expenditure decreased by 5.6% to US$9,304,640 in 2008 compared to US$9,852,974 in 2007. Expenditure on Sub–Projects accounted for 70.0% of the Total Expenditure while Operating and Project Management Cost accounted for 28.4%.

Financial Position651. The overall financial position of the Commission showed an upward movement in the Net Current Assets from US$801,250 in 2007 to US$1,065,046 in 2008, an increase of 32.9%. Details are shown Table 70.

Table 70: Financial position as at 31 December 2008 and 2007

Item2008US$

2007US$

%Change

Current Assets 1,108,190 805,537 37.6Current Liabilities 43,144 4,287 906.4Net Current Assets 1,065,046 801,250 32.9



Current Ratio 25.7:1 187.9:1

652. Current Assets which comprises mainly of cash at bank increased by 37.6% from US$805,537 in 2007 to US$1,108,190 in 2008.653. Current Liabilities also increased by 906.4% from US$4,287 in 2007 to US$43,144 in 2008. This resulted from the increase in accrued expenses.

MANAGEMENT ISSUES

Head OfficeFailure to withhold taxes – US $161,901.70654. We noted during the audit that, contrary to Section 88(1) of the Internal Revenue Act, 2000 (Act 592) , the Commission did not withhold taxes from the Pooled Accounts as shown below:

Description PV Number Amount (US$)La Palm Royal Beach Resort PV/01/019 26,990.66Wangara Hotel PV/03/043 11,258.43Elmina Beach Hotel PV/03/035 31,211.50Elmina Beach Hotel PV/04/020 45.707.12Logistic Place PV/09/021 46,733.99Total 161,901.70

655. Consequently, the Government had been denied revenue and the Commission is liable to be penalised.

656. We recommended that, Management must draw-down the money from the pool dollar fund account to the project account (Cedis) and pay the beneficiaries and the related taxes.

657. Management stated that the payments were made through transfers and since donors do not want their funds to be used for the payment of taxes, the taxes were not deducted. It further stated that the recommendation had been implemented as far back as 2004 and the current ones were slips which would be rectified.



Payment to Divestiture Implementation Committee (DIC) for the acquisition of permanent office building – GH¢204,000 658. We noted during the audit that, the Ghana Aids Commission paid DIC on 31 January 2008, an amount of GH¢204,000 towards the purchase of GNTC Bungalow No. 4 to be used as payment offices by the Commission. The land had been sold by the Osu Stool to a private developer before the same area was allocated to GAC by DIC.

659. The amount was written off as per the policy of the Commission but was reversed and treated as advance payment under debtors. This implied the debtors figure and expenses figure for the period had been misstated.

660.661. It is the responsibility of the Management to safeguard the assets of the Commission and ensure that the results of the yearrepresent a true and fair view of the affairs of the Commission.

662. We recommended that, Management should contact DIC to resolve the issue or demand refund of the amount.

663. Management accepted the recommendation and has written to DIC for a refund since the property, Bungalow No.4 no longer exists.

Voice recorder not available664. We were not able to physically verify a voice recorder bought during the year and recorded in the fixed assets register.

665. We recommended that, the fixed asset register be reviewed regularly through intermittent inventory checks to secure all assets and requested management to immediately produce the asset for our verification, otherwise the responsible officials should be surcharged.

666. Management responded that it was seriously trying to locate the asset and restore it to the stores.



Sub Projects – General CommentsCounterpart fund contribution667. We observed during the audit that, most of the sub projects did not contribute the 5% counterpart funding as indicated in the Grant Agreement signed between them and the Ghana Aids Commission (GAC).

668. This implied non-payment of matching funds thus reducing the amount available to cover the budget for the sub-projects.

669. We recommended that, Management should endeavour to make their contributions either in cash or kind.

Fixed assets register670. Our audit revealed that most of the sub projects did not keep asset registers thus depicting that the Projects’ assets may not be properly safeguarded. Some of the assets may be lost through theft or mixed up with other assets of the sub-metros and districts.

671. We recommended that, all assets belonging to the Projects are assigned unique numbers or marks to distinguish them from the sub-metros assets and to safeguard them from mishaps.

MINISTRY OF ENVIRONMENT, SCIENCE ANDTECHNOLOGY

BUILDING AND ROAD RESEARCH INSTITUTE (CSIR)

Introduction672. This report relates to the audited accounts of Building and Road Research Institute (CSIR) for the year ended 31 December 2008.

Operational Results673. The Institute recorded a deficit of GH¢73,618 in 2008 from a deficit of GH¢170,205 in 2007. This indicated a 56.7% improvement on the previous year’s figure.



674. Operational results for the year ended 2008 and 2007 are detailed in Table 71:


2007 GH¢

%Change

IncomeGovernment Grants 2,826,691 1,733,662 63.0Consultancy Income 40,877 (17,644) 331.7Other Income 165,027 213,724 (22.8)Total Income 3,032,595 1,929,742 57.2Expenditure

Establishment & Administrative Expenses

330,522 232,064 42.4

Employment Cost 2,576,200 1,677,141 53.6Travelling &Transport 66,959 94,679 67.4Repairs & Maintenance 95,231 95,429 (0.2)Financial Charges 37,301 634 5,783.4Total Expenditure 3,106,213 2,099,947 47.9Surplus / (Deficit) (73,618) (170,205) 56.7

675. Total Income comprising Government Grant, Consultancy Income and Other Income increased by 57.2% from GH¢1,929,742 in 2007 to GH¢3,032,595 in 2008. The increase resulted mainly from a 63.0% increase in Government Grant.

676. Total Expenditure increased from GH¢2,099,947 in 2007 to GH¢3,106,213 in 2008, registering an increase of 47.9%. This was due to 42.4% increase in Establishment and Administrative Expenses and 53.6% increase in Employment Cost.

Financial PositionThe Balance Sheet for the two comparative years is shown in Table 72.



Table 72: Assets and Liabilities for 2008 and 20072008GH¢

2007GH¢

% Change

Fixed Assets 677,399 578,117 15.4Capital Work-in-Progress 172,310 140,042 23.0Current Assets 234,686 499,576 (53.0)Current Liabilities 533,425 613,420 (13.0)Net Current Assets (298,739) (113,844) (162.4)Net Assets 550,970 604,315 (8.8)Current Ratio 0.4:1 0.8:1

677. The Institute’s Fixed Assets rose by 15.4% at the end of the year, recording GH¢677,399 in 2008 from GH¢578,117 in 2007. The rise was mainly due to the addition of plant, equipment and furniture, motor vehicle and mechanized borehole.

678. Current Assets decreased by 53.0% from GH¢499,576 in 2007 to GH¢234,686 in 2008. The decrease was mainly due to the 62.3% decrease in Accounts Receivable and 16.8% decrease in Cash and Cash Equivalents.

679. Current Liabilities similarly, decreased by 13.0% from GH¢613,420 in 2007 to GH¢533,425 in 2008. The decrease was due to the 87.8% decrease in Loans and Advances and 47.2% decrease in Statutory Deductions.

680. The Institute’s liquidity situation needs serious attention as the Current Ratio of 0.4:1 (2007:0.8:1) is unhealthy.

MANAGEMENT ISSUES

Accountable imprest - GH¢10,407.73681. Contrary to the policy of employees of the Institute, where accounting for imprest should be within two weeks, the underlisted members of staff have some amounts standing as debts as far back as 2006.



Name 2006GH¢

2007GH¢

TotalGH¢

Seth Owusu Nyarko 300.00 370.04 670.04Nana Nsiah Achampong 786.50 201.70 988.20W. Keteku-Atiemo 500.00 373.00 873.00B. B. Ansah 35.00 160.00 195.00I Mohammed Issah 694.92 - 694.92E. Y. Amoafo - 390.00 390.00Richardson Mensah - 300.00 300.00Joseph Davor - 597.50 597.50F. Owusu-Mensah - 370.00 370.00Christine Asimadu - 70.00 70.00Daniel Amposah - 40.00 40.00Nlukombe Benamba 56.69 - 56.69F. K. C. Akayuli 280.50 652.78 933.28James Sarfo-Ansah 561.41 157.31 718.72Charles Dela Adabor 449.40 - 449.40J. Adjei-Danquah 3,060.98 - 3,060.98Total 6,725.40 3,682.33 10,407.73

682. Such tendency which we attributed to management’s inertia to have the affected staff to promptly retire their imprest creates avenue for misuse of funds.

2. We recommended that the affected members of staff be made to account for these amounts immediately, otherwise the amount should be adjusted to their personal accounts as advances and recovered from their salaries. Management should also put in place measures which would compel staff to comply with the requirements on retiring imprest.

ANIMAL RESEARCH INSTITUTE (CSIR)

Introduction683. This report relates to the audited accounts of Animal Research Institute (CSIR) for the year ended 31st December 2008.



Operational Results684. The summary of the Institute’s operations for the year ended 31 December 2008 is provided in Table 73:


2007GH¢

%Change

IncomeGrants 2,452,109 1,448,163 69.3Other Income 35,481 42,597 (16.7)Total Income 2,487,590 1,490,760 66.9ExpenditureEstablishment & Administration Expenses

144,673 83,916 72.4

Employment Cost 1,978,738 1,386,563 42.7Repairs & Maintenance 28,694 23,317 23.1Travelling & Transport 69,644 44,662 55.9Financial & Professional Charges 2,926 2,645 10.6Research Expenses 23,104 58,145 (60.3)Depreciation Charges 39,221 4,697 735.0Total Expenditure 2,287,000 1,603,945 42.6Surplus /(Deficit) 200,590 (113,185) 277.2

685. Total Income increased from GH¢1,490,760 in 2007 to GH¢2,487,590 in 2008, representing a 66.9% increase. The increment was as a result of a 69.3% increase in Grants for the year. Grants for the year constituted 98.6% of Total Income in 2008 while Other Income constituted only 1.4%.

686. Total Expenditure increased by 42.6% from GH¢1,603,945 in 2007 to GH¢2,287,000 in 2008. The increase can be attributed mainly to a 42.7% increase in Employment Cost from GH¢1,386,563 in 2007 to GH¢1,978,738. Research expenses however, decreased by 60.3% from GH¢58,145 in 2007 to GH¢23,104 in 2008.

687. The Institute’s operations recorded a surplus of GH¢200,590 in 2008 as against a deficit of GH¢113,185 in 2007.



Financial PositionProvided in Table 74 is the financial position for the period reviewed.

Table 74: Balance Sheet as at 31 December 2008 and 20072008GH¢

2007GH¢

%Change

Non-Current Assets 187,191 71,480 161.9Current Assets 955,714 783,726 21.9Current Liabilities 820,907 764,501 7.4Net Current Assets 134,807 19,225 601.2Net Assets 321,998 90,705 255.0Current Ratio 1.2:1 1.0:1

688. Non-Current Assets at the close of 2008 was GH¢187,191 as against GH¢71,480 in the preceding year, representing an increase of 161.9%. The increase was mainly due to additions to Fixed Assets during the year 2008.

689. Current Assets rose from GH¢783,726 in 2007 to GH¢955,714 in 2008, an increase of 21.9%. The increment was due to the 19.2% increase in Inventories, and 74.2% increase in Cash and Bank Balances.

690. Current Liabilities also increased marginally by 7.4% from GH¢764,501 in 2007 to GH¢820,907 in 2008. The increment was due mainly to an increase in Accounts Payable from GH¢764,501 in 2007 to GH¢820,907 in 2008.

691. The ratio of Current Assets to Current Liabilities stood at 1.2:1 in the current year as against 1.0:1 in 2007. Although, the liquidity position improved slightly, it was still weak and needs more attention so that the Institute will be able to meet its short-term debts when they fall due.



CROPS RESEARCH INSTITUTE (CSIR)

Introduction692. This report covers the audited accounts of Crop Research Institute (CSIR) for the financial year ended 31 December 2008.

Operational Results693. The Institute received a total grant of GH¢3,236,377 and generated an amount of GH¢72,893 from internal sources in 2008 as against a grant of GH¢2,105,771 and GH¢60,537 generated in 2007, registering an increase of 52.8%. Below in table 75 are the performance indicators.


Income2008 GH¢

2007 GH¢

%Change

Recurrent Grant 3,224,553 2,083,083 54.8Research Grant 11,824 22,688 (47.9)Other Income 72,893 60,537 20.4Total Income 3,309,270 2,166,308 52.8ExpenditureRecurrent Expenses 2,971,029 2,132,695 39.3Research Expenses 24,328 19,388 25.5Total Expenditure 2,995,357 2,152,083 39.2Surplus / (Deficit) 313,913 14,225 2,106.8

694. Total Expenditure also increased from GH¢2,152,083 in 2007 to GH¢2,995,357 in 2008, an increase of 39.2%. The increase was due to a rise in Establishment and Administrative Expenses, Employment Costs, Travelling and Transport Expenses as well as Financial and Professional charges. The increase also included a 25.5% increase in Research Expenses.

695. The operations for 2008 ended with a surplus of GH¢313,913 as against the surplus of GH¢14,225 in 2007. The performance of the



Institute improved remarkably in the 2008 financial year as compared with 2007.

Financial PositionThe financial position of the Institute is shown in Table 76.

Table 76: Financial Position as at 31 December 2008 and 20072008 GH¢

2007 GH¢

%Change

Non-Current Assets 100,107 53,996 85.4Current Assets 644,520 379,815 69.7Current Liabilities 138,421 151,940 (8.9)Net Current Assets 506,099 227,876 122.1Net Assets 606,206 281,872 115.1Current Ratio 4.7:1 2.5:1

696. Non Current Assets increased by 85.4% to 100,107 (2007: 53,996).

697. Current Assets also increased by 69.7% from GH¢379,815 in 2007 to GH¢644,520 in 2008. The increase was mainly due to the 517.4% increase in Cash and Bank Balances.

698. Current Liabilities however, dropped from GH¢151,940 in 2007 to GH¢138,421 in 2008, registering a decrease of 8.9%.

699. The Institute’s liquidity ratio of 4.7:1 (2007: 2.5:1) appeared favourable and indicated the ability to meet its short-term liabilities.

INSTITUTE OF INDUSTRIAL RESEARCH (IIR) COUNCIL FOR

SCIENTIFIC AND INDUSTRIAL RESEARCH (CSIR)

Introduction700. This report is related to the audited accounts of Institute of Industrial Research for the year ended 31 December 2008.



Operational Results701. The operational results for the year ended 31 December 2008 are summarised in Table 77:

Table 77: Performance Indicators for 2008 and 20072008GH¢

2007 GH¢

% Change

IncomeGovernment Subvention 1,560,608 1,009,259 54.6Internally Generated Fund 134,054 87,265 53.6Total Income 1,694,662 1,096,524 54.5ExpenditurePersonnel Emoluments 1,249,229 876,831 42.5Repairs & Maintenance 18,292 13,169 38.9Financial Charges 1,690 - -Travelling & Transport 18,716 14,482 29.2Administrative & General Expenses 352,390 184,768 90.7Total Expenditure 1,640,317 1,089,250 50.6Income Surplus 54,345 7,274 647.1

702. Total Income increased by 54.5% from GH¢1,096,524 in 2007 to GH¢1,694,662 in 2008. This was due to a 54.6% increase in Government Subvention and a 53.6% increase in Internally Generated Fund.

703. Total Expenditure also rose by 50.6% from GH¢1,089,250 in 2007 to GH¢1,640,317 in 2008. This was mainly due to a 42.5% increase in Personnel Emoluments during the period under review.

704. The year 2008 ended with a surplus of GH¢54,345 as against a surplus of GH¢7,274 recorded in 2007.

Financial Position

The details are shown in Table 78.



Table 78: Financial Position for 2008 and 20072008GH¢

2007GH¢

% Change

Non-Current AssetsProperty, Plant & Machinery 158,438 83,480 89.8Capital Work-In-Progress 31,899 31,899 -Current Assets 425,845 248,943 71.1Current Liabilities 376,224 178,709 110.5Net Current Assets 49,621 70,234 (29.3)Net Assets 239,958 185,613 29.3Current Ratio 1.1:1 1.4:1

705. Property, Plant and Machinery rose by 89.8% from GH¢83,480 in 2007 to GH¢158,438 in 2008 due to additions during the year.

706. Current Assets also increased by 71.1% from GH¢248,943 in 2007 to GH¢425,845 in 2008 due to a 197.5% increase in Cash and Bank balances within the year.

707. Current Liabilities also increased from GH¢178,709 in 2007 to GH¢376,224 in 2008 representing an increase of 110.5%. Creditors and other credit balances accounted for the increase.

708. Net Assets of the Institute rose by 29.3% from GH¢185,613 in 2007 to GH¢239,958 in 2008 due to the surplus recorded.

709. The Institute’s Current Assets to Current Liabilities ratio was 1.1:1 at the end of the year compared with a Current Ratio of 1.4: at the end of 2007. This unhealthy liquidity ratio shows that the Institute will not be able to meet its short term obligations when they fall due.

MANAGEMENT ISSUES

Trade debtors710. We observed that trade debtors balance of GH¢55,703 included static balances amounting to GH¢3,315.26. These debts if not followed up and collected may become bad.



711. We attributed the situation to management’s apathy towards debt recovery and recommended that strenuous efforts should be made by Management to collect these debts in order to prevent losses.

FOOD RESEARCH INSTITUTE (CSIR)

Introduction712. This report relates to the audited accounts of Food Research Institute (CSIR) for the year ended 31 December 2008.

Operational ResultsThe performance components for the review period are shown in Table 79.

Table 79: Performance indicators for 2008 and 2007Income 2008

GH¢2007 GH¢

% Change

Recurrent Grant 2,299,730 1,179,255 95.0Other Income 149,380 96,751 54.4Total Income 2,449,110 1,276,006 91.9ExpenditureEstablishment & Administrative Expenses

270,366 149,434 80.9

Employment Cost 1,854,343 1,171,903 58.2Travelling & Transport 33,284 25,204 32.1Repairs & Maintenance 58,344 44,036 32.5Financial & Professional Charges 3,125 2,337 33.7Total Expenditure 2,219,462 1,392,914 59.3Excess of Income over Expenditure 229,648 (116,908) 296.4

713. Recurrent Grant increased by 95.0% from GH¢1,179,255 in 2007 to GH¢2,299,730 in 2008. Other Income recorded an increase of 54.4% from GH¢96,751 in 2007 to GH¢149,380 in 2008, which was largely due to 57.0% increase in income analytical and technical services.

714. Total Expenditure also increased by 59.3% from GH¢1,392,914 in 2007 to GH¢2,219,462 in 2008. The increase was



mainly as a result of a 58.2% rise in Employment Cost from GH¢1,171,903 in 2007 to GH¢1,854,343 in 2008.

715. The Institute recorded a surplus of GH¢229,648 in 2008 as compared to a deficit of GH¢116,908 in 2007.

Financial PositionThe Institute’s financial position is presented in Table 80.

Table 80: Financial Position as at 31 December 2008 and 20072008 GH¢

2007 GH¢

%Change

Non-Current Assets 236,379 98,415 140.2Current Assets 457,512 160,818 184.5Current Liabilities 298,433 170,404 75.1Net Current Assets 159,079 (9,586) 1,759.5Net Assets 395,458 88,829 345.2Liquidity 1.5:1 0.9:1

716. The Institute’s Non-Current Assets as at the close of 2008 stood at GH¢236,379 as against GH¢98,415 in the preceding year, an increase of 140.2%. The increase was the result of addition to Plant, Equipment and Motor Vehicles to the tune of GH¢218,606.

717. Current Assets rose by 184.5% from GH¢160,818 in 2007 to GH¢457,512 in 2008. The increase was mainly due to 232.4% increase in Bank and Cash balances.

718. Current Liabilities also increased from GH¢170,404 in 2007 to GH¢298,433 in 2008 representing a rise of 75.1%. The increment was as a result of 266.6% increase in short-term loans.

719. The Institute’s liquidity position as depicted by a Current ratio of 1.5:1 (2007: 0.9:1) shows that the Institute may struggle to settle the short term obligations as and when they fall due.

720. The Net Assets of the Institute grew from GH¢88,829.09 in 2007 to GH¢395,457.77 at the end of 2008.



MANAGEMENT ISSUES

Payroll721. We observed that, certain categories of staff were granted personal reliefs before their PAYE were computed. We could not see any documentary authorisation from Internal Revenue Service. As these reliefs were not shown on the monthly payroll, we could neither verify their composition nor ascertain whether the appropriate rates or amounts were applied.

722. We recommended to Management to ensure that individuals apply for Income Tax Reliefs before they are granted. Documentary evidence of personal reliefs granted by IRS should be kept on their personal files.

723. In a related issue we noted that the overall duty and vehicle maintenance allowance totaling GH¢ 242,586.34 paid to Staff were not included in the earnings of employees before the computation oftheir PAYE deductions. We advised Management to ensure that all cash allowances are included in the computation of PAYE.

724. We also noted in a further issue that National Service Allowance paid as shown in the pay roll was GH¢4,649 whilst the amount shown as per ledger was GH¢24,744. Explanations offered indicated that the figure might probably include salaries and wages of some regular staff of the Institute.

725. Attempts to reconcile the figure were unsuccessful and we were therefore unable to verify and reconcile the figure shown per the payroll and that disclosed in the ledger, which was used for the preparation of the final accounts.

726. Management was advised to investigate the differences in the National Service Allowance as shown per ledger and that shown per the official payroll.



Fixed assets727. We observed that three laptop computers valued at GH¢4,600 were purchased in 2007. These were correctly recorded in the Fixed Assets Register but their locations were not shown in the register to enable us verify their existence and serial numbers.

728. We recommended to Management to ensure that locations of all fixed assets are indicated or shown in the Fixed Assets Register to facilitate verification and also recommended that the laptops should be produced for verification.

ENVIRONMENTAL PROTECTION AGENCYIntroduction 729. This report is on the accounts of the Environmental Protection Agency for the year ended 31 December 2008.

Operational Results730. The Agency’s income surplus for the year under review amounted to GH¢70,546 as against GH¢138,972 recorded in the year 2007. Presented in Table 81 are the operational results.


GH¢2007GH¢

% Change

IncomeGovernment Subvention 1,707,952 1,488,014 14.8Internally Generated Fund 891,668 686,766 29.8Other Income 22,522 3,304 581.7Transfer from Development Fund 181,398 91,328 98.6Total Income 2,803,540 2,269,412 23.5ExpenditureEmployment Cost 1,716,939 1,566,543 9.6Travelling & Transportation 256,065 166,106 54.2Maintenance Repairs & Renewals 45,027 72,615 (38.0)Finance & Professional Charges 15,852 16,973 (6.6)Administrative & Other Expenses 699,111 308,203 126.8Total Expenditure 2,732,994 2,130,440 28.3Surplus / (Deficit) 70,546 138,972 (49.2)



731. Total Income for 2008 amounted to GH¢2,803,540 (2007: GH¢2,269,412), representing an increase of 23.5%. The increase was as a result of rises in all the sources of income.

732. Total Expenditure amounted to GH¢2,732,994 in 2008, an increase of 28.3% over the 2007 figure of GH¢2,130,440. The increase was due to 126.8% increase in Administrative and Other Expenses, 54.2% increase in Travelling and Transportation Expenses and 9.6% increase in Employment Cost.

Financial PositionShown in Table 82 is the financial position of the Agency.

Table 82: Financial Position as at 31 December 2008 and 2007Item 2008

GH¢2007GH¢

% Change

Fixed Assets 376,501 499,204 (24.6)Current Assets 1,410,556 248,201 468.3Current Liabilities 73,849 46,142 60.0Net Assets 1,713,208 701,263 144.3Current Ratio 19.1:1 5.4:1

733. Fixed Assets decreased by 24.6% from GH¢499,204 in 2007 to GH¢376,501 in 2008. The decrease was due to Depreciation Charges.

734. Current Assets rose significantly by 468.3% from GH¢248,201 in 2007 to GH¢1,410,556 in 2008. The increase was due mainly to a Deposit of GH¢1,122,616 for Equipment.

735. Current Liabilities also registered an increase of 60.0% from GH¢46,142 in 2007 to GH¢73,849 in 2008.

736. Liquidity as measured by the current ratio increased from 5.4:1 in 2007 to 19.1:1 in 2008. The Agency therefore has enough resources to discharge its short-term obligations as they fall due.



SOIL RESEARCH INSTITUTE (CSIR)Introduction737. This report relates to the audited accounts of Soil Research Institute for the year ended 31 December 2008.

Operational Results738. Operations for the year under review ended with an excess income over expenditure of GH¢80,561 as against a deficit of GH¢13,215 in 2007. Table 83 is a summary of the Institute’s performance for the year under review.

Table 83: Comparative Income and expenditure for 2008 and 2007

2008GH¢

2007 GH¢

%Change

IncomeSubvention from Government of Ghana

3,432,453 2,236,167 53.5

Internally Generated Funds 84,441 122,297 (31.0)Total Income 3,516,894 2,358,464 49.1Expenditure

Employment Cost 2,971,296 1,947,350 52.6Repairs & Maintenance 46,210 46,122 0.2Financial Charges 2,536 1,733 46.3Travelling &Transport 94,770 73,508 28.9Administrative & General Expenses

321,521 302,966 6.1

Total Expenditure 3,436,333 2,371,679 44.9Excess of Income over Expenditure

80,561 (13,215) (709.6)

739. Total Income for the period increased by 49.1% from GH¢2,358,464 in 2007 to GH¢3,516,894 in 2008. This was due to an increase in Subvention from Government of Ghana by 53.5%



740. Total Expenditure also increased by 44.9% from GH¢2,371,679 in 2007 to GH¢3,436,333 in 2008 resulting mainly from increase in Employment Costs by 52.6%.

Financial PositionPresented in Table 84 is the financial position of the Institute.

Table 84: Financial Position as at 31 December 2008 and 20072008GH¢

2007GH¢

%Change

Non-Current Assets 277,159 217,965 27.2Current Assets 269,421 339,495 (20.6)Current Liabilities 62,262 153,703 (59.5)Net Current Assets 207,159 185,792 11.5Net Assets 484,318 403,757 20.0Current Ratio 4.3:1 2.2:1

741. Non-Current Assets of the Institute increased from GH¢217,965 in 2007 to GH¢277,159 in 2008, an increase of 27.2% as a result of new acquisitions during the year.

742. Current Assets however, reduced by 20.6% from GH¢339,495 in 2007 to GH¢269,421 in 2008. This was due to reductions in Debtors, Prepayments and Other Debit Balances; and Cash and Bank Balances.

743. Current Liabilities also reduced from GH¢153,703 in 2007 to GH¢62,262 in 2008, a decrease of 59.5%. Reductions in Creditors, Accruals and Other Credit Balances accounted for the decrease.

744. A favourable liquidity position was registered at the end of the year as indicated by the Current Ratio of 4.3:1 (2007:2.2:1) which showed the ability of the Institute to meet its short-term financial obligations as and when they become due.



MANAGEMENT ISSUES

Insurance of office buildings745. We observed that, the Office Building had not been insured. As a result, in case of any eventuality, especially fire outbreak, the Institute can incur a huge loss without recourse to adequate compensation if the property had been insured.

746. We recommended that, the Office Buildings be insured without delay.

Title deeds747. We noted that, the Institute did not have title deeds for the land on which the office building was situated. This meant that, the existence of title deeds could forestall unnecessary land litigation.

748. We recommended that immediate steps be taken to obtain title deeds for the Institute’s properties.

749. Management responded that, the initial title deed which was in the name of Ministry of Agriculture had expired since June 2008 adding that the Institute was in the process of getting it renewed.

MINISTRY OF CULTURE AND CHEIFTANCY

NATIONAL SYMPHONY ORCHESTRA

Introduction750. This report is related to the audited accounts of the National Symphony Orchestra for two years ended 31 December 2008.

Operational Results751. The Orchestra recorded a deficit of GH¢18,364.74 in 2008 as against a surplus of GH¢12,529.11. Table 85 is the main performance indicators.




GH¢2007 GH¢ % Change

Total Income 126,892.65 96,792.96 31.1ExpenditurePersonal Emoluments 116,991.31 69,183.13 69.1Administration 25,754.68 13,700.87 88.0Service 2,511.60 1,379.85 82.0Total Expenditure 145,257.59 84,263.85 72.4Surplus/(Deficit) (18,364.94) 12,529.11

752. Total Income of the entity increased by 31.1% from GH¢96,792.96 in 2007 to GH¢126,892.62 in 2008. The total income of the Orchestra comprised subvention and internally generated funds. The rise in total income was mainly due to an increase of 31.4% in subvention from GH¢93,185.96 in 2007 to GH¢122,463.77 in 2008. Other income also increased by 22.8% from GH¢3,607.00 in 2007 to GH¢4,428.88 in 2008.

753. Total expenditure also increased by 72.4% from GH¢84,263.85 in 2007 to GH¢145,245.59 in 2008.This resulted from increases in Personal Emolument expenditure of 69.1% from GH¢69,183.13 to GH¢116,991.31, 88.0% in Administrative expenditure from GH¢13,700.87 to GH¢25,754.68 and 82.0% in Service expenditure from GH¢1,379.85 in 2007 to GH¢2,511.60 in 2008. The significant rise in Administrative expenses was mainly due to increases in tools allowance and expenses on refreshment and entertainment allowance while the repairs of maintenance of building accounted for the sharp rise in Service activity.

754. An operational deficit of GH¢18,364.94 was recorded in 2008 as against a surplus of GH¢12,529.11 in 2007.

Financial PositionThe Orchestra’s financial position for the year 2008 is presented in Table 86.



Table 86: Financial position as at 31 December 2008 and 2007.2008 GH¢

2007GH¢

% Change

Fixed Assets 82,861.36 81,871.86 1.2Current Assets 3,114.08 22,468.52 (86.)Current Liabilities - -Net Assets 85,975.44 104,340.38 (17.6)

755. The fixed assets increased marginally by 1.2% from GH¢81,871.86 in 2007 to GH¢82,861.36 in 2008. The increase resulted from the acquisition of musical instruments and office furniture in 2008. No assets were disposed off in 2008.

756. Current asset, made up bank and cash balances, declined by 86.1% from GH¢22,468.52 to GH¢3,114.08. The Orchestra had no current liabilities at the end of the year.

757. The Accumulated fund of the Orchestra dropped from GH¢104,340.38 to GH¢ 85,975.44 due to the deficit recorded.

MANAGEMENT ISSUES

Failure to respond to audit reports758. Section 29 of the Audit Service Act, 2000, (Act 584) requires the management of an audited organisation to reply to audit reports within 30 days after receipt of such report and failure to comply could result in the Auditor-General withholding the salaries and allowances of those persons.

759. The Orchestra failed to respond to our previous report No. CAD/DA.5/Vol.1/03 dated 25 September 2007 contrary to the stated above regulation. Also, in the past, NSO did not treat audit reports with earnestness and dispatch.

760. This was a result of failure of the Orchestra to establish an Audit Report Implementation Committee (ARIC). Consequently



recommendations made in audit and other monitoring reports might not be implemented.

761. In order to avoid recurrence of shortcomings identified in audits and other monitoring reports, we recommended and management agreed to establish an ARIC without further delay to take immediate action on all audit reports.

GHANA DANCE ENSEMBLE

Introduction762. This report relates to the audited accounts of the Ghana dance Ensemble for two years ended 31 December 2008.

Operational results763. The year 2008 ended with a surplus of GH¢15,820.73 as against a deficit of GH¢23,985.48 recorded in 2007. Presented in Table 87 is the summary of the income and expenditure accounts for the two years.

Table 87: Comparative income and expenditure accounts for 2008 and 2007Income 2008

GH¢2007GH¢

% Increase/Decrease

Subvention 95,580.37 55,025.03 73.7IGF 37,109.15 23,904.50 55.2Total 132,689.52 78,929.53 68.1ExpenditurePersonnel Emoluments 95,580.37 82,405.31 16.0General Admin 21,288.42 20,509.70 3.8Total 116,868.79 102,915.01 13.6Surplus/Deficit 15,820.73 (23,985.48)

764. Total income for 2008 rose by 68.1%, from GH¢78,929.53 in 2007 to GH¢132,689.52 in 2008 due to an increase of 73.7% in Government Subvention.



765. Total expenditure also registered an increase of 13.6% from GH¢102,915.01 in 2007 to GH¢116,868.79 in 2008. This was mainly due to a rise in personnel emoluments.

Financial position766. Ghana Dance Ensemble’s fixed assets increased by 17.5% from GH¢11,251.99 in 2007 to GH¢13,228.99 in 2008. The increase was due to the acquisition of office equipment costing GH¢1,977.00.

767. Current assets rose from GH¢26,693.42 in 2007 to GH¢40,537.15 I in 2008, representing an increase of GH¢13,843.73 or 41.6%. The Ensemble however had no current liabilities as at the year-end. This puts the Ensemble in favourable position to meet its short-term obligation as and when they fall due.

MINISTRY OF LAND, FORESTRY AND MINES

OFFICE OF THE ADMINISTRATOR OF STOOL LANDS Introduction

768. This report relates to the Office of the Administrator of Stool Lands for the two-year period ended 31 December 2008.

Operational Results769. The Office made a surplus of GH¢170,097 as against a deficit of GH¢119,716 for the previous year.

770. Table 88 is a summary of the Office’s income and expenditure statement for the two comparative years.

Table 88: Income Statement for 2008Income 2008

GH¢2007GH¢

% Change

Subvention 896,808 599,788 49.5IGF 1,442,908 851,794 69.4Donor (LAP) 25,827 18,754 37.7Other Income 25,766 - 100



TOTAL 2,391,308 1,470,336 62.6ExpenditurePersonnel Emoluments 781,110 509.838 53.2Admin Expenses 1,079,605 767,114 40.7Service Expenses 334,691 294,462 13.7Project (LAP) Expenses 25,805 18,638 38.5TOTAL 2,221,211 1,590,052 39.7Surplus (Deficit) 170,097 (119,716) 242.1

771. The improvement in the Office’s performance from a deficit position to a surplus was as a result of an increase of 62.6% in total income from GH¢1,470,336 in the previous year to GH¢2,391,309 in the year under review.

772. The rise in total income was due to increases in the various components of income. Prominent among the increase was internally generated funds, made up of Minerals royalties (GH¢622,204), Timber Royalties (GH¢587,314), Ground Rent (GH¢182,778). Farm Rent (GH¢48,763) and others of GH¢1,845, which witnessed a sharp increase of 69.4% to GH¢1,442,908 in 2008. This accounted for 60.3% of the total income. Other income comprised mainly of an exchange gain of GH¢24,866 realized from the refund of payments made by the defunct Ghana Airways during the year for the acquisition of accommodation facility, also contributed to the significant change in total income generated.

773. Total Expenditure went up by 39.7% from GH¢1,590,052 in 2007 to GH¢2,221,211 in the current year. This was mainly as a result of increases in Personnel Emoluments of 53.2% and Administrative Expenses of 40%. Personnel emoluments and Administrative Expenses constituted 83% (2007: 80%) of the total expenditure.

Financial PositionRecorded in Table 89 is the movement in balance sheet items for the two comparative years.



Table 89: Financial position as at 31 December 2008 and 20072008 GH¢

2007GH¢

% Change

Fixed Assets 1,081,477 952,545 13.5Current Assets 181,093 139,928 29.4Current Liabilities - -Net Assets 1,262,570 1,092,473 15.6

774. The net book value of fixed assets went up by 13.5% from GH¢952,545 in 2007 to GH¢1,081,477 at the end of 2008 due to the acquisition of assets and additions in building.

775. Current assets which stood at GH¢181,092.67 (2007: GH¢139,928.18) at the year-end, represented an increase of 29.4%. This was made up of bank balances and staff debtors. The Office recorded no current liabilities as at the end of 2008. This put the Office in a favourable liquidity position.

776. The long-term position of the Office for 2008 was mainly represented by previous year’s Accumulated fund of GH¢1,092,473 and Surplus of GH¢170,097. This grew by 19.9% over the 2007 figure as a result of the operational surplus realized.

MANAGEMENT ISSUES

Failure to account for fuel in vehicle log books- GH¢27,549.00777. Contrary to Chapter 1604 of Stores Regulations 1984, drivers failed to record issued fuel coupons amounting to GH¢27,549.00 in respective vehicle log books. Officers who used the vehicles also failed to certify journeys undertaken.

778. We could therefore not confirm whether the fuel was actually used for official purposes. The omission was caused by lack of supervision over the drivers, which could lead to diversion and eventual loss of state funds.



779. We advised and management agreed to exercise adequate control over the transport section by ensuring that in future drivers account for issued fuel coupons while officers using the vehicles are made to certify journeys undertaken

PRECIOUS MINERALS MARKETING COMPANYLIMITED (PMMC)

Introduction780. This report relates to the audited accounts of Precious Minerals Marketing Company Limited (PMMC) for the financial year ended 31 December 2008.

Operational Results781. The company’s operations for the year ended with a Net Profit of GH¢501,121, an increase 5.9% over the Net Profit of GH¢473,368 for 2007. The operational results are shown in Table 90.

Table 90: Income Statement for 2008 Income 2008

GH¢2007 GH¢

% Change

Sales 35,953,885 13,306,182 170.2Cost of Sales (34,546,116) (11,700,812) 195.2Gross Profit 1,407,769 1,605,370 (12.3)Other Income 1,584,484 970,153 63.3Total Income 2,992,253 2,575,523 16.2Expenditure

General, Administrative & Selling Expense

2,324,092 1,944,366 19.5

Provision for Tax 167,040 157,789 5.9Total Expenditure 2,491,132 2,102,155 18.5Net Profit 501,121 473,368 5.9

782. Profit for the year increased by GH¢27,753 (5.9%) from GH¢473,368 in 2007 to GH¢501,121 in 2008. The increase in profit was due to 63.3% increase in Other Income.

783. Total Sales for the year increased by 170.2% to close the year at GH¢35,953,885 (2007: GH¢13,306,182). The Sales were as follows: Gold Exports GH¢33,606,097 (2007: GH¢10,939,532),



Jewellery GH¢2,066,507 (2007: GH¢2,113,334), Polished Diamond GH¢230,837 (2007: GH¢215,327) and Silver GH¢50,444 (2007: GH¢37,989).

784. Cost of Sales also registered a 192.5% increase over the 2007 figure of GH¢11,700,812 to GH¢34,546,116 at the end of 2008. General Administrative and Selling Expenses also increased by 19.5% from GH¢1,944,366 in 2007 to GH¢2,324,092 in 2008. However, a 63.3% increase in Other Income from GH¢970,153 to GH¢1,584,484 led to the Surplus of GH¢501,121.

Financial PositionThe balance sheet as at 31 December 2008 is presented in Table 91.

Table 91: Assets and Liabilities for 2008 and 20072008 GH¢

2007 GH¢

% Change

Fixed Assets 1,596,949 1,399,861 14.1Investments 6,455 6,455 -Current Assets 3,078,209 3,126,070 (1.5)Current Liabilities 2,194,942 2,433,211 (9.8)Net Assets 2,486,671 2,099,175 18.5Current Ratio 1.4:1 1.3:1

785. Fixed Assets, which stood at GH¢1,399,861 in 2007 increased to GH¢1,596,949 in 2008, thus recording an increase of 14.1%. The increase was due to purchase of property, plant and equipment during the year.

786. Current Assets, which stood at GH¢3,126,070 in 2007 decreased by 1.5% to GH¢3,078,209 in 2008, recording a decrease of 1.5%.

787. Current Liabilities also decreased by 9.8% from GH¢2,433,211 in 2007 to GH¢2,194,942 in 2008. This was as a result of 72.5% reduction in Accounts Payable



788. The Company’s liquidity ratio at the end of the year was 1.4:1 (2007: 1.3:1). This indicates that the Company may not be able to meet its short-term liabilities as and when they fall due.

MANAGEMENT ISSUES

Stock difference -GH¢238,889789. Management, last year, stated that the stock shortage was due to Jewellery returned from outstations to head office which could not be accounted for by the then Divisional Accountant, Mr. Stephen Pagfu.

790. Management explained that, the shortage would be recovered from the Divisional Accountant. Therefore, we treated the stock shortage as account receivable. However, no recovery was made during the year 2008 and so the total balance as at 31 December 2008 still stood at GH¢238,889.

791. We did not get updates on the court proceedings of the Divisional Accountant in South Africa in order to ascertain why recoveries had not been made as yet.

792. Management responded that according to the PMMC Solicitor in South Africa, the case could not proceed because the South African Government has now appointed a new public lawyer for Stephen Pagfu who had lost his former lawyer. The new lawyer would need time to interact with Stephen Pagfu and study the case before proceedings would commence and also the Ghana High Commission had still not gotten the Presidential Assent from the South African Government.



MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT

MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT

SECOND URBAN ENVIRONMENTAL SANITATION PROJECT (UESPII)

IDA CREDIT NO. 3889-GH, AFD CREDIT NO. CGH 6006 01J, NDF CREDIT NO. 430 AND GOVERNMENT OF GHANA

FUNDS

Introduction793. This report is on the audited accounts of Second Urban Environmental Sanitation Project (UESP II) of Ministry of Local Government and Rural Development for the period ended 31 December 2008.

Operational Results794. Table 92 is the comparative figures depicting the Project’s operations for 2007 and 2008.

Table 92: Income Statements for 2008 2008US$

2007US$

%Change

IncomeCash and Bank Balances as at 1st Jan 133,821 736,258 (81.8)IDA Fund 11,621,477 3,460,701 235.8AFD Fund 882,000 408,523 115.9NDF Fund 4,030,064 1,366,915 194.8GoG Fund 259,347 19,875 1,204.9Interest Earned 18,359 7,134 157.3Transfer from IDA 24,457 - 100.0Transfer from AFD 10,930 - 100.0NDF Refund 107,097 435 24,520Exchange Difference 1,435 - 100.0Total Income 17,088,987 5,999,841 184.8ExpenditureCivil Works 164,042 - 100.0



Vehicles, Equipment & Spare Parts 219,479 96,688 127.0Consultants Services, Studies & Training

2,041,171 1,857,180 9.9

Operating Costs – Others 290,164 189,631 53.0Refund into IDA Accounts 106,881 - 100.0MA’s Withdrawal Applications 11,427,766 3,722,521 207.0Transfer to MA’s 775,419 - 100.0Exchange Loss 162,597 - 100.0Total Expenditure 15,187,519 5,866,020 158.9Cash and Bank Balances as at 31st

Dec1,901,468 133,821 1,320.9

795. Total receipts for the project for the period under review amounted to US$17,088,987 registering a significant increase of 184.8% over the previous year’s figure of US$5,999,841. This was due to an increase of 235.8% and 194.8% in IDA and NDF funding respectively.

796. Total Expenditures for the same period under review amounted to US$15,187,519 as against US$5,866,020 recorded in the previous year, registering an increase of 158.9%. The increase was mainly attributed to increases in the MA’s Withdrawal Applications of US$775,419 and refund into IDA Accounts of US$106,881.

Financial PositionDetailed in Table 93 are the movements in the financial position of the Project.

Table 93: Financial Position as at 31 December 2008 and 2007Asset 2008

US$2007US$

%Change

Capital Expenditure 925,459 513,024 80.4Current Assets 19,414,628 5,258,836 269.2Current Liabilities 519,670 83,060 525.7Net Current Assets 18,894,958 5,175,776 265.1Net Assets 27,310,777 10,511,156 159.8Current Ratio 37.4:1 63.3:1Financed By:IDA Credit 19,121,392 7,499,916 155.0



AFD Credit 1,370,409 488,409 180.6NDF Credit 6,352,585 2,322,521 173.5Government of Ghana Fund 431,595 172,248 150.6Other Projects’ Financing 34,796 28,062 24.0

797. Capital Expenditure for the period under review was US$925,459 as against the figure of US$513,024 for 2007 representing an increase of 80.4%.

798. Current Assets, however, increased by 269.2% from US$5,258,836 in 2007 to US$19,414,628 in 2008. The significant increase in cash and cash equivalent from US$133,821 in 2007 to US$1,901,468 in 2008 and MA’s Withdrawal Applications of US$3,722,521 in 2007 as compared to US$14,490,291 in 2008 largely accounted for the overall rise.

799. Current Liabilities also increased from US$83,060 in 2007 to US$519,670 in 2008, a sharp rise of 525.7%. This was mainly due to an increase of US$436,610 in Accounts Payable.

800. There was no improvement in the Project’s liquidity position as portrayed by its current ratio of 37.4:1 (2007:63.3:1), though it showed a healthy status there is a need to improve the financial position.

801. Total Net Assets grew from US$10,511,156 in 2007 to US$27,310,777, a significant rise of 159.8%.

MANAGEMENT ISSUES

Non-payment of 5% withholding taxes – US$42,625 802. We observed during the audit that, 5% withholding tax totalling US$42,625 had been deducted on payments made to contractors, consultants and suppliers and were yet to be remitted to the Internal Revenue Service contrary to Section 87 of the Internal Revenue Service Act 592, which requires withholding tax agents to



make payments of taxes withheld to the Commissioner of IRS within 15 days after tax deduction.

803. As this could result in the payment of penalties by the Project, thereby increasing cost ,management was advised to pay the taxes deducted to the IRS without delay.

804. Management responded that, schedules of out-standing taxes have been submitted to the Ministry of Finance and Economic Planning for payment.

Non-payment of 15% VAT on procurement of goods and services – US$44,746805. We noted during the audit that, the 15% VAT element on goods and services supplied to the Project totalling US$44,746 had not been paid to the suppliers.

806. This could lead to the state being denied of its tax revenue for development programmes.

807. Management was therefore advised to comply with the VAT law and act accordingly.

808. Management accepted our recommendation and responded that schedules of outstanding taxes will be computed and submitted to MOFEP for payment



ACCRA METROPOLITAN ASSEMBLY (AMA)SECOND URBAN ENVIRONMENTAL SANITATION

PROJECT (UESPII)IDA CREDIT NO. 3889-GH, AFD CREDIT NO. CGH 6006 01J,

NDF CREDIT NO. 430 AND ACCRA METROPOLITAN ASSEMBLY FUNDS

Introduction809. This report relates to the audited accounts of Accra Metropolitan Assembly (AMA) (UESP II) for the financial year ended 31 December 2008.

Operational ResultsDetails of the main performance indicators are provided in Table 94.


US$2007US$

% Change

ResourcesBank Balance as at 1 January 110,974 237,406 (53.3)Replenishments 3,008,462 285,341 954.3AMA Funding 180,000 273,656 (34.2)AFD 66,927 - -NDF 77,984 - -Interest Received 5,027 879 471.9Other Income - 2,862 -Total Resources 3,449,374 800,144 331.1ExpenditureCivil Works 2,337,552 259,984 799.1Goods 25,214 52,603 (52.1)Consulting Services, Studies & Training

371,980 217,154 71.3

Operating Cost 166,955 159,429 4.7Total Expenditure 2,901,701 689,170 321.0Balance as at 31 December 547,673 110,974 393.5

810. Total Resources made available during the year under review rose by 331.1% to US$3,449,374 in 2008 from US$800,144 in 2007.



The rise resulted mainly from a 954.3% increase in Replenishments from IDA Funds from US$285,341 in 2007 to US$3,008,462.

811. Total Expenditure for the period amounted to US$2,901,701, an increase of 321.0% from US$689,170 in 2007. The increase was mainly due to a 799.1% increase in Civil Works Expenditure from US$259,984 in 2007 to US$2,337,552 in 2008 and a 71.3% increase in Consultancy Services, Studies and Training Costs.

Financial PositionStated in Table 95 is the financial position of the Project as at 31 December 2008.


US$2007US$

% Change

Capital Expenditure 2,528,477 143,201 1,665.7Current Assets 654,785 319,126 105.2Current Liabilities 36,464 87,462 (58.3)Net Current Assets 618,321 231,664 166.9Non-Capital Expenditure 1,298,611 737,171 76.2Net Assets 4,445,409 1,112,036 299.8Current Ratio 17.96:1 3.65:1

812. Capital Expenditure increased by 1,665.7% from US$143,201 in 2007 to US$2,528,477 in 2008. This was mainly due to a 3,949.2% increase in Civil Works Expenditure and 30.2% increase in Goods.

813. Current Assets rose by 105.2% from US$319,126 in 2007 to US$654,785 in 2008 while Current Liabilities decreased by 58.3% from US$87,462 in 2007 to US$36,464 in 2008.

814. Non-Capital Expenditure increased by 76.2% from US$737,171 in 2007 to US$1,298,611 in 2008. This was due to increases in Consultancy Services, Studies and Training Costs and Operating Costs.



815. Net Assets increased by 299.8% from US$1,112,036 in 2007 to US$4,445,409 in 2008.

RURAL ENTERPRISE PROJECT (REP II)GOG/IFAD/AFDB

IFAD LOAN NO. 588-GH AND AFDB LOAN NO. 2100150007015

(PROJECT NO. P-GH-A00-001)

Introduction816. This report covers the audited financial statements of Rural Enterprises Project under IFAD Project Loan Number 588-GH from International Fund for Agricultural Development and AfDB Loan Number 2100150007015 from African Development Bank for the year ended 31st December 2008.

Operational Results817. The Project made a net surplus of GH¢1,481,306 (2007: GH¢510,977), a significant increase of 189.9% over that of the previous year. Cash and Bank balances accordingly represented this. The components of the resources and expenditure of the Project are provided in Table 96 below:

Table 96: Resources and Expenditure for 2008 and 2007Item 2008

GH¢2007GH¢

% Change

ResourcesIFAD Loan (588-GH) 1,878,010 1,936,164 (3.0)GoG Fund / Contribution 285,000 352,116 (19.1)AfDB Loan 1,803,431 1,551,152 16.3Clients 62,633 33,579 86.5NBSSI 149,074 79,182 88.3District Assembly 330,550 66,453 397.4ARB Apex Bank 43,778 8,606 408.7GRATIS 32,955 19,823 66.2Sundry Credits (102,687) 128,653 (179.8)Sundry Receipts 14,953 48,796 (69.4)Exchange (Loss) / Gain 1,252 16 7,725.0



Total Resources 4,498,951 4,224,542 6.5ExpenditureAssetsFurniture, Fittings & Equipment 99,013 574,782 (82.8)Motor Vehicles 7,184 563,189 (98.7)Workshop Buildings 167,147 208,554 (19.9)Sundry Debtors (80,453) 91,771 (187.7)Training & Workshop 1,213,180 929,696 30.5Technical Assistance & Studies 466,361 578,109 (19.3)Recurrent CostsFinancial Services 19,673 15,137 30.0Operating Costs 1,125,540 752,328 49.6Total Expenditure 3,017,645 3,713,565 (18.7)Surplus / (Deficit) 1,481,306 510,977 189.9Represented by Cash and Bank 1,481,306 510,977 189.9

818. Total Resources for the year under review increased marginally by 6.5% from GH¢4,224,542 in 2007 to GH¢4,498,951 in 2008. The increase was mainly due to the 16.3% increase in AfDB Loan, 88.3% increase in NBSSI and 397.4% increase in District Assembly.

819. Total Expenditure however, decreased by 18.7% from GH¢3,713,565 in 2007 to GH¢3,017,645 in 2008. The decrease was as a result of the reduction in the cost of Fixed Assets acquired during the year under review as against those purchased in 2007.

Financial PositionStated in Table 97 is the balance sheet for 2008 and 2007.


GH¢2007GH¢

% Change

Non-Current Assets 2,582,834 2,309,490 11.8Current Assets 2,944,883 1,544,029 90.7Current Liabilities 172,629 275,316 (37.3)Net Current Assets 2,772,253 1,268,713 118.5Net Assets 5,355,087 3,578,203 49.7Current Ratio 17.06:1 5.61:1



820. Non-Current Assets which stood at GH¢2,309,490 in 2007 increased by 11.8% to GH¢2,582,834 in 2008. The marginal increase was due to the acquisition of Motor Vehicles and other Workshop Equipment during the year.

821. Current Assets also rose by 90.7% or GH¢1,400,854 to GH¢2,944,883 at the end of 2008 due mainly to a rise of GH¢1,481,307 or 109.3% in Cash and Bank Balances.

822. Current Liabilities however, reduced by 37.3% from GH¢275,316 in 2007 to GH¢172,629 in 2008.

823. Net Current Assets thus registered an increase of 118.5% to GH¢2,772,253 at the end of 2008 compared to the 2007 figure of GH¢1,268,713.

824. Net Assets of the Project grew by 49.7% from GH¢3,578,203 in 2007 to GH¢5,355,087 in 2008.

MINISTRY OF TRANSPORT

GHANA SHIPPERS’ COUNCILIntroduction825. This report relates to the audited accounts of Ghana Shippers Council for the financial year ended 31 December 2008.

Operational Results826. The Council’s operations for the year ended with an excess of income over expenditure of GH¢2,040,311, compared with a surplus of GH¢1,403,944 recorded in 2007. The operational results are presented in Table 98 below:




GH¢2007GH¢

% Change

IncomeTotal Income 9,142,944 6,401,533 42.8ExpenditureGeneral & Administrative Expenses 6,403,842 4,388,704 45.9Audit Fees 8,500 7,500 13.3Depreciation 690,291 601,385 14.8Total Expenditure 7,102,633 4,997,589 42.1Surplus / (Deficit) 2,040,311 1,403,944 45.3

827. The Council generated a Total Income of GH¢9,142,944 as against GH¢6,401,533 in 2007, an increase of 42.8%. The increase was mainly due to increases in Service Charge from GH¢4,179,309 in 2007 to GH¢5,563,124 in 2008, Investment Income from GH¢1,095,265 in 2007 to GH¢1,717,653 in 2008, and Warehouse Rent from GH¢337,090 in 2007 to GH¢870,069 in 2008.

828. Total Expenditure also increased by 42.1 from GH¢4,997,589 in 2007 to GH¢7,102,633 in 2008. This can be attributed to General and Administrative Expenses, which increased by 45.9% from GH¢4,388,704 in 2007 to GH¢6,403,842 in 2008.

Financial Position\Shown in Table 99 is the financial position for the two comparative years.


GH¢2007GH¢

% Change

Fixed Assets 4,477,129 4,445,676 0.7Projects In Progress 8,193,515 7,902,692 3.7Investments 4,899,182 3,895,203 25.8Current Assets 13,368,787 11,851,847 12.8Current Liabilities 1,985,169 1,182,285 67.9Net Current Assets 11,383,618 10,669,562 6.7Net Assets 28,953,444 26,913,133 7.6Current Ratio 6.7:1 10.0:1



829. Fixed Assets, which stood at GH¢4,445,676 in 2007 increased marginally to GH¢4,477,129.

830. Projects-In-Progress also increased from GH¢7,902,692 in 2007 to GH¢8,193,515 thereby registering an increase of 3.7%.

831. Investments also increased by 25.8% from GH¢3,895,203 in 2007 to GH¢4,899,182 in 2008.

832. Current Assets also rose from GH¢11,851,847 in 2007 to GH¢13,368,787 in 2008 recording an increase of 12.8%

833. Current Liabilities rose from GH¢1,182,285 in 2007 to GH¢1,985,169 in 2008, thus registering an increase of 67.9%. This was mainly as a result of the GH¢1,961,157 owed by the Council to Ghana Maritime Authority.

834. The Council’s liquidity ratio at the end of year was 6.7:1 (2007: 10.1:1). This was an indication that the Council could meet its short-term liabilities as and when they fell due.

GHANA MARITIME AUTHORITYIntroduction835. This report covers the audited accounts of Ghana Maritime Authority for the financial year ended 31 December 2008.

Operational Results836. The Authority’s operations for the year ended with an excess of income over expenditure of GH¢630,840, compared with a surplus of GH¢152,571 in 2007.

837. Total Income of the Authority increased by 108.8% from GH¢2,867,764 in 2007 to GH¢5,987,431 in 2008. The increase was due mainly to an 88.5% rise in Service Charge from GH¢2,725,013 in 2007 to GH¢5,297,515 in 2008. Table 100 shows the performance indicators for the period reviewed.



Table 100: Performance indicators for 2008 and 2007Item 2008

GH¢2007GH¢

% Change

Income 5,987,431 2,867,764 108.8Less ExpenditureGeneral & Administrative Expenses 4,939,746 2,513,137 96.6Directors Emoluments 189,209 111,057 70.4Audit Fees 20,000 17,500 14.3Depreciation 207,636 73,499 182.5Total Expenditure 5,356,591 2,715,193 97.3Excess of Income over Expenditure 630,840 152,571 313.5

838. The Total Expenditure increased by 97.3% from GH¢2,715,193 in 2007 to GH¢5,356,591 in 2008. This was largely due to a 134.6% rise in Salaries from GH¢820,298 in 2007 to GH¢1,924,024 in 2008 and increase in expenditure on Overseas Passage and Airfares from GH¢111,199 in 2007 to GH¢569,309 in 2008, an increase of 412%.

Financial PositionIn Table 101 is the Authority’s financial position for the two comparative years.

Table 101: Balance Sheet as at 31 December 2008 and 2007Item 2008

GH¢2007GH¢

% Change

Non-Current Assets 1,767,165 1,886,633 (6.3)Current Assets 2,899,983 1,775,287 63.4Current Liabilities 595,875 221,487 169.0Net Current Assets 2,304,108 1,553,800 48.3Net Assets 4,071,273 3,440,433 18.3Current Ratio 4.87:1 8.02:1 6.7Accumulated Fund 4,071,273 3,440,433 18.3

839. Total Non-Current Assets decreased from GH¢1,886,633 in 2007 to GH¢1,767,165 in 2008. The Non-Current Assets were made up of Fixed Assets and Investments. Fixed Assets increased by 82.8% to GH¢1,038,161 in 2008 (2007: GH¢567,823). The increase was largely due to the purchase of computers and office machines during



the year. Investments however, decreased by 44.7% from GH¢1,318,810 in 2007 to GH¢729,004 in 2008.

840. Current Assets increased by 63.4% from GH¢1,775,287 in 2007 to GH¢2,899,983 in 2008. This was largely due to a 42.3% rise in Debtors and Prepayments from GH¢1,455,006 in 2007 to GH¢2,070,494 in 2008.

841. Current Liabilities recorded a 169.0% increase from GH¢221,487 in 2007 to GH¢595,875 in 2008. This was as a result of a rise in Sundry Creditors and Accruals to the Internal Revenue Service.842. Liquidity, as measured by the Current Ratio decreased from 8.02:1 in 2007 to 4.87:1 in 2008. The Authority, however, has enough resources to discharge its short-term obligations as they fell due.

GHANA CIVIL AVIATION AUTHORITY

Introduction843. This report relates to the audited accounts of Ghana Civil Aviation Authority (GCAA) for the financial year ended 31 December 2008.

Operational Results844. The Authority declared a surplus of GH¢4,205,857 in 2008 as against a surplus of GH¢647,804 in 2007. Performance details are shown in Table 102:

Table 102: Performance details for 2008 and 2007Item 2008

GH¢2007GH¢

% Change

Operating Income 21,840,743 17,576,569 24.3Operating Expenses 10,423,244 8,958,056 16.4Gross Profit 11,417,499 8,618,513 32.5Administrative & Other Expenses 15,471,746 10,889,437 42.1Operating Loss (4,054,247) (2,270,924) 78.5Other Income 8,260,104 2,918,728 183.0



Surplus / (deficit) 4,205,857 647,804 549.2

845. Operating Income increased by 24.3% in 2008 from GH¢17,576,569 in 2007 to GH¢21,840,743 whilst Direct Operating Expenses increased by 16.4% from GH¢8,958,056 in 2007 to GH¢10,423,244 in 2008. This was due mainly to the 13.7% increase in Salaries.

846. Administrative and Other Operating Expenses increased sharply by 42.1% to GH¢15,471,746 (2007: GH¢10,889,437). The resultant Operating Loss was however absorbed by a 183.0% increase in Other Income from GH¢2,918,728 in 2007 to GH¢8,260,104 at the end of 2008.

Financial Position847. The Balance Sheet as at 31 December 2008 is shown in Table 103.


GH¢2007GH¢

% Change

Non-Current Assets 40,546,960 41,852,299 (3.1)Amount Due From Ghana Airports Co. Ltd. 86,668,500 108,146,690 (19.9)Current Assets 46,559,041 25,868,440 80.0Current Liabilities 46,992,167 48,433,006 (3.0)Net Current Assets (433,126) (22,564,566) (98.1)Long-Term Loans 88,729 5,375,529 (98.3)Net Assets 126,693,605 122,058,894 3.8Current Ratio 1:1 0.5:1

848. Non-Current Assets which stood at GH¢41,852,299 in 2007 decreased by 3.1% to GH¢40,546,960. The decrease was the result of disposal of Motor Vehicles and the Depreciation Charges during the period.

849. Current Assets increased by 80.0% from GH¢25,868,440 in 2007 to GH¢46,559,041 in 2008. This can be attributed to a 128.6%



increase in Debtors figure and 192.1% increase in Marketable Securities.

850. Current Liabilities declined by 3.0% from GH¢48,433,006 in 2007 to GH¢46,992,167 in 2008.

851. The liquidity position as depicted by a current ratio of 1:1 (2007: 0.5:1) shows that the Authority will not be able to meet its short-term liabilities as and when they fell due.

MANAGEMENT ISSUES

Title deeds852. We observed that, the Authority had not obtained valid title deeds to cover most of its lands and operating sites including some of those transferred to the Ghana Airports Company Limited.

853. We drew management’s attention on the need to obtain title deeds on its immovable properties as in the absence of relevant documents, the Authority stood the risk of losing its assets in times of disputes.

854. We advised management the need to intensify its efforts to have the title deed for its properties.

855. Management responded that, its Legal Department was seriously pursuing this matter with the Lands Commission.

Debtors856. There was very little evidence to show that Senior Management reviewed balances on the many categories of debtors regularly with a view to recovering long outstanding debts and why they have been outstanding for so long.

857. The Authority’s fund might be locked up in debtors or not recovered thus resulting in losses.



858. We recommended that, monthly reconciliations be carried out to agree the debtor’s schedules to the general ledger and where there are any differences these should be thoroughly investigated and the appropriate remedial action taken.

859. Management was also advised to prepare age analysis reports for all categories of debtors.

860. Management responded that, letters demanding payments of outstanding invoices with a reconciled statement attached are sent to debtors on quarterly basis. However, this was done in batches because of the large number of receivables.

Staff imprest3. A number of staff imprest detailed below remained outstanding as at 31 December 2008.

Date Transaction No. Amount (GH¢) Recipient18/7/07 700672 1,600.00 Justice Adjei31/12/07 701409 2,943.76 Willie Orhin31/12/07 801955 7,000.00 C. Twum6/11/08 801591 1,000.00 A. Mallet 861. Under such circumstance we were not able to authenticate whether the money was used for its intended purpose.

862. We recommended that, all outstanding staff imprests are retired immediately and that the Authority’s laid down procedures are strictly adhered to at all times.

863. Management responded that, all the staff whose names remained outstanding on the accountable imprest list have been given up to the end of the year to retire them or suffer a surcharge.



GHANA AIRPORTS COMPANY LIMITED

Introduction864. This report relates to the audited financial statements of Ghana Airport Company Limited for the financial year ended 31 December 2007. The Company commenced operations in January 2007.

Operational Results865. Operations for the year under review closed with a net profit of GH¢27,380. The performance indicators are shown in Table 104 below:

Table 104: Income Statement for 2007Item 2007

GH¢Operating Income 15,212,863Operating Expenses (17,801,072)Operating Loss 2,588,209Other Income 7,660,726General & Administrative Expenses

(5,045,137)

Net Profit 27,380

866. Operating Income is made up of Airside and Airport Passenger Service Charge (APSC). The Airport Passenger Service Charge accounted for 65.4% of Total Operating Income, while Airside accounted for 34.6%.

867. Other Income is made up of Royalties Income, Rent Income, Car Park, Miscellaneous Income, Exchange difference, etc. Royalties Income and Rent Income accounted for 54.8% and 27.3% respectively of Other Income.

868. Operating Expenses includes Staff Costs, Repairs and Maintenance, Contract Services and Depreciation. Staff Costs accounted for 65.2% of the Total Operating Expenses.



869. General and Administrative Expenses also includes Provision for Terminal Benefits, Medical Expenses, Transport Expenses and Employee Welfare. Provision for Terminal Benefits alone accounted for 68.1%.

Financial PositionTable 105 shows the financial position as at 31 December 2007.

Table 105: Financial position for 2007Item 2007

GH¢Non-Current Assets 113,428,846Current Assets 23,702,505Current Liabilities 25,112,048Net Current Liabilities (1,409,543)Non-Current Liabilities 110,991,923Net Assets 1,027,380Current Ratio 0.9:1

870. Non-Current Assets comprise of Property, Plant and Equipment and Investments. During the year under review, the Company reported a transfer of assets totalling GH¢111,425,481 by the Ghana Civil Aviation Authority. However, they could not furnish us with the appropriate supporting documents including title to ownership to establish whether the Company has the legal rights to those assets. We were therefore unable to establish the ownership and valuation of those assets.

871. Investments stood at GH¢1,696,380 at the end of the year under review. As a result of the decoupling process between Ghana Civil Aviation Authority and Ghana Airports Company Limited; the Company is also reported to have taken over three subsidiaries namely Aviation Social Centre, Air-Commence Forex Bureau Limited and Airport Clinic (Ghana) Limited. We were not provided with the documentary evidence including the incorporation documents to



establish the type of relationship that exist between Ghana Airports Company Limited and these entities. No formal Board resolutions have also been sighted to this effect. Also included in the assets transferred are investment properties (Aviation House) valued at GH¢1,154,042. We were also unable to verify ownership and other related details of these properties.

872. Also included in the assets transferred are Investment Properties (Aviation House) valued at GH¢1,154,042. We were also unable to verify the ownership and other related valuation details of these properties.

873. The Current Ratio of 0.9:1 in 2007 was indicative of a short-term liquidity problem facing the company.874.

GHANA PORTS AND HARBOURS AUTHORITY

Introduction875. This report relates to the audited accounts of Ghana Ports and Harbours Authority for the year ended 31 December 2008.

Operational Results876. The Ghana Ports and Harbours Authority made a Profit of GH¢22,738,020 for the year under review. This showed a decrease of 4.0% over the previous year’s Profit of GH¢23,688,807. Details of Income and Expenditure are provided in Table 106:


GH¢2007GH¢

% Change

IncomeVessel Services 20,823,986 18,361,481 13.4Vessel Facilities 37,341,375 30,061,597 24.2Cargo Services 20,528,064 16,988,073 20.8Cargo Facilities 10,853,221 12,501,907 (13.2)Royalties 15,318,139 14,561,381 5.2



Miscellaneous Income 14,731,751 20,476,159 (28.1)Total Income 119,596,536 112,950,598 5.9ExpenditurePersonnel Cost 46,453,144 41,410,638 12.2Fuel, Power & Water 7,060,821 5,761,482 22.6Bought-In Maintenance & Materials

11,475,219 8,531,485 34.5

Other Operating Costs 2,065,557 1,704,445 21.2Administrative Expenses 15,863,396 17,635,615 (10.0)Depreciation 7,997,386 10,938,433 (26.9)Bad & Doubtful Debt 29,923 136,754 (78.1)Interest & Charges 5,913,070 3,142,939 88.1Total Expenditure 96,858,516 89,261,791 8.5Net Profit 22,738,020 23,688,807 (4.0)

877. Total Income for 2008 increased by 5.9% from GH¢112,950,598 in 2007 to GH¢119,596,536 in 2008. Apart from income from Cargo Facilities and Miscellaneous Income which declined by 13.2% and 28.1% respectively, all other revenue items increased during the year.

878. Total Expenditure also increased by 8.5% from GH¢89,261,791 in 2007 to GH¢96,858,516 in 2008. The increase in Expenditure was mainly due to the rise in Personnel Cost, Fuel, Brought-In Maintenance & Materials and Interest & Charges. Administrative Expenses and Depreciation charges however, decreased by 10.0% and 26.9% respectively.

Financial PositionTable 107 presents a summary of the financial position.


GH¢2007GH¢

% Change

Fixed Assets 156,924,235 141,683,425 10.8Investments 2,810,913 2,810,913 -Current Assets 96,018,801 86,177,978 11.4Current Liabilities 40,706,009 21,296,699 91.1Net Current Assets 55,312,792 64,881,279 (14.7)



Net Assets 215,047,940 209,375,617 2.7Current Ratio 2.4:1 4.0:1

879. The Authority’s Fixed Assets rose to GH¢156,924,235 in 2008 from GH¢141,683,425 in 2007, a rise of 10.8%. The increase in Fixed Assets was due to additions added during the year.

880. Current Assets increased by 11.4% from GH¢86,177,978 in 2007 to GH¢96,018,801 in 2008. The increase was due to 15.8% rise in Short-Term Investments, 8.0% increase in Stocks and 104.4% increase in Cash and Bank Balances.

881. Current Liabilities also went up by 91.1% from GH¢21,296,699 in 2007 to GH¢40,706,009 in 2008.

882. Even though, the Current Ratio in 2007 of 4.0:1 dropped to 2.4:1 in 2008, the Authority will still be able to meet its short-term obligations.

MINISTRY OF FOOD AND AGRICULTURE

NERICA RICE DISSEMINATION PROJECTADF LOAN AGREEMENT NUMBER 2100150007161

Introduction883. This report covers the audited financial statements of Ministry of Food and Agriculture, NERICA Rice Dissemination Project, ADF Loan Agreement Number 2100150007161 for the period ended 31 December 2008.

Operational Results884. The African Development Fund (ADF) contributed US$968,189, representing 74.4% of total funds made available for the project during the year. Counterpart funding from GoG for the year under review amounted to US$332,952 or 25.6% of the Total Funds



Received. Presented in Table 108 are details of the Project’s performance for 2007 and 2008:

Table 108: Income Statement for 2008 2008US$

2007US$

% Change

Funds ReceivedFunds from ADF 968,189 445,691 117.2Counterpart funding – GoG 332,952 215,543 54.5Total Funds Received 1,301,141 661,234 96.8ExpenditureGoods 330,311 262,614 25.8Services 365,194 282,446 29.3Operating Cost 167,118 104,573 59.8Civil Works 11,839 16,774 (29.4)Total Expenditure 874,462 666,407 31.2

885. Total Expenditure for the year under review was US$874,462 as compared to the figure of US$666,407 for 2007, representing an increase of 31.2%.

Financial PositionBalance Sheet items for the two comparative years are shown in Table 109.

Table 109: Financial Position as at 31 December 2008 and 20072008US$

2007US$

%Change

Accumulated Project Expenditure

1,823,868 949,407 92.1

Current Assets 643,851 217,716 195.7Net Assets 2,467,719 1,167,123 111.4Represented By:ADF Loan 1,748,245 780,056 124.1GoG Contribution 719,474 386,522 86.1Other Contribution - 545 (100.0)Total 2,467,719 1,167,123



886. Accumulated project expenditure as at the end 2008 was US$1,823,868 (2007: US$949,407), an increase of 92.1%.

887. Current Assets also increased by 195.7% from US$217,716 in 2007 to US$643,851 in 2008. The increase was due mainly to the significant increase in ADF Special Account – US Dollar from US $142,475 in 2007 to US$542,820 in 2008.

888. Net Assets grew by 111.4% from US$1,167,123 in 2007 to US$2,467,719 in 2008.

889. The worth of the project was represented by African Development Fund – Loan of US$1,748,245 (2007: US$780,056), Government of Ghana Contribution of US$719,474 (2007: US$386,522).

MANAGEMENT ISSUES

No contracts/agreements for hiring of farm lands890. We noted that payments made to land owners for hiring of land for demonstration did not have any contract, agreement or receipt indicating payment.

891. We could not ascertain the occurrence, authenticity and validity of those payments.

892. We therefore recommended that, Management should ensure that all payments made are supported by appropriate payment vouchers, invoices, receipts and other relevant documents relating to the expenditure incurred.

893. Management, however, felt obliged to advise the land owners to sign or thumbprint for monies paid for renting their land for demonstration.



MINISTRY OF FOOD AND AGRICULTURE (MOFA) DIRECTORATE OF CROP SERVICES CASHEW DEVELOPMENT PROJECT – LOAN NUMBER

ADF/GHA/PL/AAA/2001/1/ (2100150000345)

Introduction894. This report is related to the audited accounts of the Cashew Development Project for the year ended 31 December 2008.

Funds Received895. Funds received for the year 2008 totalled US$1,012,006. This was made up of transfers from African Development Fund (ADF) of US$791,294 which represented 78.2% of the total funds, Counterpart Funding of US$202,812 from Government of Ghana and Other Income of US$17,900 representing 20.0% and 1.8% respectively.

Project Cost896. Total project cost was US$1,322,443 in 2008. Goods, Equipment and Materials amounted to US$241,256, Training and Consultancy Services represented US$594,915 and Operating Cost represented US$486,272 of the total amount.

897. Accumulated project expenditure increased by 24.4% from US$5,414,028 in 2007 to US$6,736,471 in 2008. Table 110 shows an analysis of the accumulated project expenditure.

Table 110: Accumulated project expenditure for 2008 and 2007Item Cumulative to

31 December 2008 US$

Cumulative to 31 December

2007 US$

%Change

Goods, Equipment & Material

2,516,951 2,275,695 10.6

Training & Consultancy Services

2,079,066 1,484,151 40.1

Operating Cost 2,140,454 1,654,182 29.4Total 6,736,471 5,414,028 24.4

Financial Position



Movement in balance sheet items is presented in Table 111.

Table 111: Financial position as at 31 December 2008 and 2007Item 2008

US$2007 US$

%Change

Accumulated Project Expenditure

6,736,471 5,414,028 24.4

Current Assets 5,419,316 2,719,752 99.3Net Assets 12,155,787 8,133,780 49.4Represented by:ADF Loan 11,019,701 7,218,407 52.7GOG Contribution 993,410 790,598 25.7Other Contribution 142,676 124,775 14.3

898. Current Assets increased by 99.3% from US$2,719,752 in 2007 to US$5,419,316 in 2008. The project had no current liabilities for the two years under review.

899. Net Assets grew by 49.4% from US$8,133,780 in 2007 to US$12,155,787 in 2008. This was due to a 52.7% increase in ADF Loan, 25.7% and 14.3% increases in GOG and Other Contributions respectively.

MINISTRY OF FOOD AND AGRICULTURE (MOFA)WEST AFRICA AGRICULTURAL PRODUCTIVITY

PROGRAMME (WAAPP) IDA CREDIT NO. 42860-GH

Introduction900. This report covers the audited accounts of West Africa Agricultural Productivity Programme (WAAPP) for the year ended 31 December 2008. The programme launch was performed in May 2008, which saw the commencement of programme activities to achieve the set objectives. Thus, there cannot be a comparison of the Income Statement and Balance Sheets.

Operational Results901. Total Receipts of the Programme for the 2008 financial year amounted to US$2,329,321. This was made up of Disbursements from the loan of US$1,400,000 and a transfer from IDA Special



Accounts of US$915,229. Interest of US$14,092 was also received during the year. The performance indicators are shown in table 112:

Table 112: Performance indicators for 2008Item 2008

US$ReceiptsDisbursements from the loan 1,400,000Transfer from IDA Special Account 915,229Interest Received 14,092Total Funds Available 2,329,321ExpendituresGoods, Equipment, Vehicles and Materials

15,215

Training & Consultancy Services 10,000Operating Cost 612,499Exchange Difference 41,838Total Direct Expenditure 679,552Transfer to Project Accounts 915,229Account Payable (10,000)Total Expenditure 1,584,781Cash and Bank Balance 744,540

2,329,321

902. Total Direct Expenditure is made up of Goods, Equipment, Vehicles and Materials, Training and Consultancy Services, Operating Costs and Exchange Difference. Operating Costs alone accounted for 90.1% of the Total Direct Expenditure.

903. An amount of US$915,229, representing 57.8% of Total Expenditure, was transferred to Project Accounts during the year.

Financial PositionThe financial position as at 31 December 2008 is shown in Table 113.



Table 113: Balance sheet as at 31 December 2008Item 2008

US$Capital Expenditure 15,215Current Assets 744,540Current Liabilities 10,000Net Current Assets 734,540Accumulated Non-Capital Expenditure

650,245

Net Assets 1,400,000Current Ratio 74.5:1

904. Capital Expenditure is made up of Equipment purchased during the year.

905. Current Assets is comprised of Cash and Bank Balance of IDA Designated Account – US$, Project Cedi Account – PCU and Project Cedi Account – CSIR. IDA Designated Account – US$ accounted for 65.0% of the Total Current Assets.

906. Current Liabilities is made up of accrual of Audit Fees for the year ended December 2008.

907. Accumulated Non-Capital Expenditure also consists of Training and Consultancy Services, Operating Cost, Exchange Difference and Interest Received. Operating Cost alone accounted for 94.2% of the Total Accumulated Non-Capital Expenditure.

MANAGEMENT ISSUES

Fund Management908. We observed that, GH¢300,000 (US$275,229) transferred from the IDA-Dollar Designated Account to the CSIR Ghana Cedi Account was underutilised. Only GH¢112,765 was utilised as at the end of the period under review. This resulted in an exchange loss of US$17,463 at the end of the year.



909. It was also noticed that of the GH¢101,500 (US$100,000) transferred from the IDA-Dollar Account to the Programme Coordination Unit’s (PCU) Cedi Account, only GH¢27,000 had been utilised as at the end of the period under review. This resulted in the recording of an exchange loss of US$11,767 at the end of the year.

910. Due to the continued depreciation of the local currency, it would be prudent to institute short-term fund management procedures as an integral project financial management system. This is to ensure that, funds not required immediately for operations are retained in the US Dollar Designated Bank Account and only transferred into the Local Designated Bank Account when necessary.

911. As a result, we recommended that, funds management function be introduced to enable the programme determine the actual funds required to meet the action plan or targets of the programme in any given month.

912. The Management accepted the recommendation.

Funds Received

Government of Ghana Counterpart Fund913. The Government of Ghana contributions to the program is in the form of fiscal revenues and it consists of tax exemptions on the overall credit proceeds. We observed that, the GOG contributions through VAT, custom duties, salaries, wages and allowances of seconded staff, as well as, office accommodation and utility payments had not been quantified and captured as contribution of the GOG to the program.

914. We recommended that, the PCU, with the support of the Ministry of Finance and Economic Planning, should as much as possible determine and quantify all contributions made to the program by the GOG. This should subsequently be charged to the program and reflected as the GOG contribution to the project.



915. The Management accepted the recommendation and said that assistance would be sought from the Ministry of Finance and Economic Planning through MOFA to assist the project ensure that counterpart funds are captured in the book of accounts.

Interest Earned on Bank Balances As Credited by Bank916. Interest earned on the designated bank accounts during the period, amounted to US$14,092. This amount was paid by the bank into the designated bank accounts maintained by the project.

917. We observed that, separate interest accounts were not maintained to control interest earned on both the designated accounts and the project bank accounts.

918. We recommended that, separate interest bank accounts must be opened and interest earned must be lodged into these accounts.

919. Management accepted the recommendation and said it will apply for assistance from the Controller and Accountant-Generals Department through the MOFA to assist the project open interest accounts for the project.

MINISTRY OF TRADE AND INDUSTRIES

GHANA HEAVY EQUIPMENT LIMITED

Introduction920. This report relates to the audited accounts of Ghana Heavy Equipment Limited for the year ended 31 December 2008.

Operational Results921. The Company’s operations for the year ended with a profit of GH¢49,605, showed a marked improvement over the prior year’s profit of GH¢18,173. Presented in Table 114 are details of the operational results.




GH¢2007GH¢

% Change

IncomeSales 6,721,024 3,993,610 68.3Less Cost of Sales 4,668,110 2,352,717 98.4Gross Profit 2,052,914 1,640,893 25.1Other Income 261,757 123,711 111.6Total Income 2,314,671 1,764,604 31.2ExpenditureOperating & Administrative Expenses

2,117,170 1,568,592 35.0

Directors Emoluments 56,582 49,696 13.9Audit Fees 8,500 8,500 -Depreciation Charges 82,814 119,643 (30.8)Total Administrative Cost 2,265,066 1,746,431 29.7Operating Profit 49,605 18,173 173.0

922. Sales increased by 68.3% from GH¢3,993,610 in 2007 to GH¢6,721,024 in 2008. This was mainly due to 111.8% increase in the sale of spare parts.

923. Cost of Sales also increased by 98.4% or GH¢2,315,393 over the previous year’s figure.

924. Other Income increased from GH¢123,711 in 2007 to GH¢261,757 in 2008, an increase of 111.6%. This was mainly due to a 144.4% increase in Commission from GH¢73,433 in 2007 to GH¢179,425 in 2008.

925. Total Expenditure recorded an increase of 29.7% from GH¢1,746,431 in 2007 to GH¢2,265,066 in 2008.

Financial PositionTable 115 represents the Company’s financial position for the period reviewed.




GH¢2007GH¢

% Change

Fixed Assets 1,056,012 1,044,003 1.2Long-Term Receivables 2,706,558 2,706,558 -Current Assets 4,286,401 3,974,009 7.9Current Liabilities 2,269,335 1,982,138 14.5Net Current Assets 2,017,066 1,991,871 1.3Total Assets 5,779,636 5,742,432 0.6Current Ratio 1.9:1 2.0:1

926. Fixed Assets increased marginally by 1.2% over the previous year’s figure. Long-Term Receivables, which represents amount receivable from Ministry of Trade and Industry for funding the rehabilitation of Ghana House did not see any movement during theyear.

927. Current Assets increased slightly from GH¢3,974,009 in 2007 to GH¢4,286,401 in 2008, indicating a 7.9% increase mainly due to a 26.4% increase in Debtors.

928. Current Liabilities also increased by 14.5% from GH¢1,982,138 in 2007 to GH¢2,269,335 in 2008.

929. Current Ratio of 1.9:1 (2007: 2:1) shows that the Company can meet its short-term financial obligations as and when they fell due.

MANAGEMENT ISSUES

Dividend930. We observed that the dividends proposed for 2004 and 2005 of GH¢53,000 have still not been paid.

931. Management explained that, the amount was not paid because the Board at the time was negotiating with the Ministry to offset the Company’s liability with the claim on the Ghana House Renovation Expenditure.



Debtors932. The perennial problems of receipts from Trade Debtors have not improved. Not even contracting a debt collection company could solve the problem. As at the time of reporting the debt stood at GH¢4,286,401.

933.Management responded that in spite of its efforts; it is true that the repayment by debtors was not encouraging. It is therefore considering a legal action if the trend continues.

934. We recommended that strenuous efforts be made by Management to identify the reasons why its customers are proving difficult to settle their indebtedness for remedial actions to be taken.

GHANA INVESTMENT PROMOTION CENTRE

Introduction935. This report relates to the audited accounts of Ghana Investment Promotion Centre (GIPC) for the financial year ended 31 December 2008.

Operational Results936. Operations for the year closed with a surplus of GH¢1,115,768 compared with GH¢680,493 in 2007. Presented in Table 116 below are the performance indicators for the period under review.


GH¢2007GH¢

% Change

IncomeGovernment Grant 328,204 696,217 (52.9)Fee Income 1,447,001 1,334,950 8.4Other Income 296,886 71,124 317.4Strategy Grant 1,645,463 - -Amortization of Grant 9,126 13,689 (33.3)Total Income 3,726,680 2,115,980 76.1



ExpenditureGeneral & Administrative Expenses

2,602,298 1,159,972 124.3

Financial Charges 8,614 3,709 132.2Extra-Ordinary Expenses - 271,806 -Total Expenditure 2,610,912 1,435,487 81.9Surplus / (Deficit) 1,115,768 680,493 64.0

937. Total Income increased by 76.1% from GH¢2,115,980 in 2007 to GH¢3,726,680 in 2008. This can be attributed to a rise of 317.4% increase in Other Income.

938. Total Expenditure also increased by 81.9% to GH¢2,610,912 from GH¢1,435,487 in 2007. This was due mainly to a 124.3% rise in General and Administrative Expenses.

Financial PositionThe Centre’s financial position as at 31 December is presented in Table 117.


GH¢2007GH¢

% Change

Fixed Assets 791,831 510,362 55.2Current Assets 2,238,675 1,430,457 56.5Current Liabilities 353,579 370,534 (4.6)Net Current Assets 1,885,096 1,059,923 77.9Net Assets 2,676,927 1,570,285 70.5Current Ratio 6.3:1 3.9:1

939. Fixed Assets at the close of 2008 amounted to GH¢791,831 as against GH¢510,362 in the preceding year, representing an increase of 55.2%. The increase was due to additions to Motor Vehicles and Furniture, Equipment and Tools during the year.

940. Current Assets increased by 56.5% from GH¢1,430,457 in 2007 to GH¢2,238,675 in 2008. The increase was due mainly to a



60.4% rise in Cash and Bank Balances from GH¢1,198,678 in 2007 to GH¢1,922,669 in 2008.

941. Current Liabilities however, decreased by 4.6% from GH¢370,534 in 2007 to GH¢353,579 in 2008.

942. The liquidity position as measured by the current ratio of 6.3:1 showed a healthy position.

GHANA STANDARDS BOARD

Introduction943. This report relates to the audited accounts of Ghana Standards Board for the financial year ended 31 December 2006.

Operational Results944. Ghana Standard Board reported a surplus of ¢13,920.0 million in 2006 as compared to ¢4,963.2 million in 2005, an increase of 180.5%. Table 118 summarises the Income Statement for 2006 and 2005.


¢’Million2005

¢’Million%

ChangeIncomeRecurrent Grants 25,181.3 18,370.7 37.1Internally Generated Funds 27,468.8 17,831.6 54.0Total Income 52,650.1 36,202.3 45.4ExpenditurePersonnel Emoluments 26,099.1 21,124.6 23.5Administrative Activity Expenses 9,035.2 6,660.0 35.7Service Activity 3,595.8 3,454.5 4.1Total Expenditure 38,730.1 31,239.1 24.0Surplus / (Deficit) 13,920.0 4,963.3 180.5



945. Total Income increased by 45.4% from ¢36,202.3 million in 2005 to ¢52,650.1 million in 2006. The increase was due to 37.1% rise in Grants and 54.0% increase in Internally Generated Funds.

946. Total Expenditure moved from ¢31,239.1 million in 2006 to ¢38,730.1 million in 2006, an increase of 24.0%. The increase was due to rise in Salaries and Salary related allowances, Training and Consumable Materials.

Financial PositionTable 119 shows the financial position for the period reviewed.


¢’Million2005

¢’Million%

ChangeNon-Current Assets 33,574.1 48,297.6 (30.5)Current Assets 44,193.5 15,781.5 180.0Current Liabilities 2,285.2 2,256.3 1.3Net Current Assets 41,908.3 13,525.2 209.9Net Assets 75,482.4 61,822.8 22.1Current Ratio 19.3:1 7.0:1

947. Non-Current Assets which stood at ¢48,297.6 million in 2005, decreased by 30.5% to ¢33,574.1 million in 2006. The decrease was due mainly to a 92.7% reduction in Deposit for Property.

948. Current Assets rose by 180.0% from ¢15,781.5 million in 2005 to ¢44,193.5 million in 2006. The increase was as a result of significant increases in Stocks, Debtors and Cash and Bank Balances.

949. Current Liabilities increased slightly by 1.3% from ¢2,256.3 million in 2005 to ¢2,285.2 million in 2006.

950. The Current Ratio of the Board showed a favourable position of 19.3:1 in 2006 depicting the ability of the Board to discharge its short-term obligations as and when they fall due.




Introduction951. This report is in relation to the audited accounts of the National Board for Small Scale Industries (NBSSI) for the year ended 31 December 2008.

Operational Results952. Operations for the year under review closed with a surplus of GH¢208,404 compared with GH¢163,599 in 2007. The operational results for the year ended 31 December2008 is summarised in Table 120:


GH¢2007GH¢

% Change

IncomeGovernment Subvention 1,566,765 1,291,035 21.4Sundry Income 117,767 112,033 5.1Total Income 1,684,532 1,403,068 20.1ExpenditurePersonnel Emolument 838,353 677,916 23.7Administrative Expenses 425,001 352,188 20.7Service Expenses 212,774 209,365 1.6Total Expenditure 1,476,128 1,239,469 19.1Surplus 208,404 163,599

953. Total Income of NBSSI increased by 20.1% from GH¢1,403,068 in 2007 to GH¢1,684,532 in 2008. The increase was mainly due to a rise in Government Subvention which accounted for 93.0% of Total Income.

954. Total Expenditure also increased from GH¢1,239,469 in 20007 to GH¢1,476,128 in 2008, an increase of 19.1%. Personnel Emoluments and Administrative Expenses contributed significantly to the increase.



Financial PositionPresented in Table 121 is the financial position of NBSSi as at 31 December 2008

Table 121: Financial Position as at 31 December 2008 Item 2008

GH¢2007GH¢

% Change

Fixed Assets 639,548 498,149 28.4Investment Cost 5 5 -Current Assets 274,186 221,997 23.5Current Liabilities 3 14,819 (99.9)Net Assets 913,736 705,332 29.5Current Ratio 91,395:1 15:1

955. Fixed Assets rose from GH¢498,149 in 2007 to GH¢639,548 in 2008, a rise of 28.4%. Acquisition of motor vehicles and office machines contributed to the increase.

956. Current Assets went up by 23.5% from GH¢221,997 in 2007 to GH¢274,186 in 2008. This was attributed to increases in sundry debtors, advances/loans and cash at bank.

957. Current Liabilities on the other hand decreased by 99.9%. The significant reduction was due to the discharge of all sundry creditors with the exception of SSB Consumer Credit Limited.


Introduction958. This report is in relation to the audited accounts of the National Board for Small Scale Industries (NBSSI) for the year ended 31 December 2008.

Operational Results959. Operations for the year under review closed with a surplus of GH¢208,404 compared with GH¢163,599 in 2007. Performance components of the year under review are shown in Table 122:



Table 122: Operational results for 2008 and 2007Item 2008

GH¢2007GH¢

% Change

IncomeGovernment Subvention 1,566,765 1,291,035 21.4Sundry Income 117,767 112,033 5.1Total Income 1,684,532 1,403,068 20.1ExpenditurePersonnel Emolument 838,353 677,916 23.7Administrative Expenses 425,001 352,188 20.7Service Expenses 212,774 209,365 1.6Total Expenditure 1,476,128 1,239,469 19.1Surplus 208,404 163,599

960. Total Income of NBSSI increased by 20.1% from GH¢1,403,068 in 2007 to GH¢1,684,532 in 2008. The increase was mainly due to a rise in Government Subvention which accounted for 93.0% of Total Income.

961. Total Expenditure also increased from GH¢1,239,469 in 20007 to GH¢1,476,128 in 2008, an increase of 19.1%. Personnel Emoluments and Administrative Expenses contributed significantly to the increase.Financial PositionProvided in Table 123 is NBSSI’s financial position as at 31 December 2008.


GH¢2007GH¢

% Change

Fixed Assets 639,548 498,149 28.4Investment Cost 5 5 -Current Assets 274,186 221,997 23.5Current Liabilities 3 14,819 (99.9)Net Assets 913,736 705,332 29.5Current Ratio 91,395:1 15:1



962. Fixed Assets rose from GH¢498,149 in 2007 to GH¢639,548 in 2008, a rise of 28.4%. Acquisition of motor vehicles and office machines contributed to the increase.

963. Current Assets went up by 23.5% from GH¢221,997 in 2007 to GH¢274,186 in 2008. This was attributed to increases in sundry debtors, advances / loans and cash at bank.

964. Current Liabilities on the other hand decreased by 99.9%. The significant reduction was due to the discharge of all sundry creditors with the exception of SSB Consumer Credit Limited.

MANAGEMENT ISSUES

Poor recovery of loans- GH¢23,676.67965. Fourteen beneficiaries who were granted loans inclusive of interest totalling GH¢42,663.98 under the Revolving Fund and MASLOC schemes in 2008 have as at the time of reporting defaulted to the tune of GH¢23,676.67.

966. Management’s inability to vigorously pursue the recovery of the loans granted is the result of the non-recovery of the loans, which has denied other eligible beneficiaries of the facility.

967. We recommended that management adopts stringent measures to recover the total loans of GH23,676.67 defaulted.

968. Management stated that it was making frantic effort to have the defaulters pay back the loans since all defaulters have been served notices and the office of the Attorney General contacted for possible legal action.

Use of unapproved value books969. We observed that receipts books and payment vouchers used by the Board were neither procured from nor approved by the C&AGD, contrary to Regulation 211 of L. I 1802.



970. Management responded that the value books were printed in 1999 before L. I 1802 was promulgated adding that in December 2006, it wrote to CAGD for permission to use the remaining stock of books and a response was yet to be received.

971. We however did not agree with management’s response since the then FAR of 1979 also made the same provision for procurement of value books. In our opinion since the value books lacked security features, they were susceptible to duplication as a result of which might lead to losses to the Board.

972. We recommended that management should route the procurement of all value books by the Board through the C&AGD, in order to avoid losses and situations that would impinge negatively on the integrity of the Board.

Unearned salaries- GH¢13,075.29973. Our payroll audit revealed that seven separated officers were paid a total unearned salary of GH¢13,075.29 between January 2009 and October 2009.

974. Management attributed the anomaly to delay by the Controller and Accountant-General’s Department (CAGD) in deleting the names of separated officers’ from the payroll. We also blamed it on management’s failure to notify bankers of the officers involved to immediately stop the payment of their salary and transfer same into the Consolidated Fund as enjoined by FAR 298 (3b).

975. The anomaly could lead to a loss of GH¢13,075.29 to the state.

976.977. Management was advised to recover the money from either their bankers if not withdrawn or pursue the staff to refund the unearned salaries to Government chest if the money had been



withdrawn. We also advised management to put in place the necessary measures that would prevent a recurrence of the anomaly.

978. Management accepted our recommendation for compliance and informed us that it had written to the respective banks involved to repay the unearned salaries into the Consolidated Fund.

GHANA EXPORT PROMOTION COUNCIL

Introduction979. This report covers the audited accounts of the export Promotion Council for the period 1 January 2007 to 31 December 2008.

Operational results980. The Council recorded an excess of income over expenditure of GH¢41,232.65 in 2008 as against GH¢102,414.47 in 2007, representing a decrease of 60%. The details of the performance indicators are shown in Table 124.

Table 124: Comparative income and expenditure accounts for 2008 and 2007

Income 2008GH¢

2007GH¢

% ChangeIncrease/

(Decrease)Total Income 1,767,168.04 1,466,635.03 20.0ExpenditurePersonal Emolument 651,283.94 464,852.88 40.0Travelling & Transport 60,716.38 54,925.63 10.0General Expenditure 115,692.52 110,931.98 4.0Maintenance & Repairs 65,914.96 68,277.05 (4.0)Other Recurrent Expenditure 42,569.88 53,306.59 (20.0)Works Program/Service 789,757.71 611,926.43 29.0Total Expenditure 1,725,935.39 1,364,220.56 27.0Excess of Income over Expenditure

41,232.65 102,414.47 (60.0)



981. The total income of the Council increased by 20% from GH¢1,466,635.03 in 2007 to GH¢1,767,168.04. This comprised Government Subvention, EDIF receipts, dividends, and other income. The rise in total income was mainly due to increases in Project receipts namely UN- Geneva, MSME and EMQAP included in other income.

982. Total Expenditure also went up by 27% to GH¢1,364,220.56 mainly due to increases in Personnel Emoluments- GH¢186,431.06 and Works Program/Services- GH¢177,831.28.Financial position983. Presented in Table 125 is the movement in the financial position for the two comparative years.

Table 125: Balance sheet as at 31 December 2008 and 20072008GH¢

2007GH¢

%Change

Fixed Assets 344,699.51 358,256.88 (3.8)Long Term Investments 10,971.55 9,479.67 15.7Current Assets 221,126.02 165,499.77 33.6Current Liabilities 33,464.04 31,135.93 7.5Net Current Assets 187,661.98 134,363.84 39.7Net Total Assets 543,333.04 502,100.39 8.2Current Ratio 6.6:1 5.3:1

984. The Council recorded a decrease in book value of Fixed Assets by 3.8% from GH¢358,256.88 in 2007 to GH¢344,699.51 in 2008 due to depreciation charges.

985. Current assets stood at GH¢ 221,126.02 (2005: GH¢165,499.77) representing an increase of 33.6%. This mainly resulted from increases in bank balances. Current liabilities also recorded a 7.5% increase from GH¢31,135.93 in 2007 to GH¢ 33,464.04 in 2008 due to a rise outstanding utility bills.

986. The liquidity position of the Council as measured by the current ratio stood at 6.6:1 in 2008 against 5.3:1 indicating its ability to meet short- term liabilities as and when they fall due.



987. Accumulated Fund grew from GH¢ 502,100.39 in 2007 to GH¢ 543,333.04 in 2008 resulting from the surplus recorded.

MANAGEMENT ISSUES

Bank accounts988. Though we requested, management could not provide us with the certified bank statement on the following accounts to enable us authenticate the amount recorded in the financial statement.

Name of Bank Account No. Amount GH¢ADB-Fund 4,094.24ADB –Project 3068 477.40

989. According to management, the Council guaranteed ADB bank loans with the Export Production Villages (EPV) revolving funds to the following companies who have refused to fulfill their obligations under the loan agreement. Subsequently ADB had placed lien on the balance in the Council’s EPV Account.

Company Amount (GH¢)

i. “10” million Enterprise 2,078ii Philips Waters 1,650iii Bamboi Cooperative Pepper 1,650 Farmers Association iv. Victory Farm Complex Limited 2,188.7

990. We recommended that management should use vigorous efforts to recover the debts from the Companies involved.

Missing receipt books 991. We observed that four counterfoil receipt booklets listed below were missing and as a result could not be unaccounted for. Management failed to investigate the loss contrary to Regulation 230 of L.I. 1802 because it had not been earlier discovered.



992. The lapse, which could be attributed to ineffective supervision and dereliction of duty by the Internal Audit Unit, might result in loss of revenue.

993. We recommended that management should investigate the issue and take the necessary remedial action to prevent a recurrence and revenue leakages. We also recommended that management should improve upon its supervisory role and advised the Internal Audit Unit to be more diligent in its work.

Purchases not routed through stores – GH¢ 90,388.52994. Various purchases amounting to GH¢90,388.52 for the review period were not routed through stores before use in violation of Store Regulations 0502 and 0604 of 1984 which requires that goods received should be recorded in the appropriate ledger and tally cards and issues of same made to authorised persons on the authority of properly signed documents.

995. The procedural lapse, which was as a result of the absence of a storekeeper, was a recipe for diversion of stores and other stores malpractices. We could therefore not authenticate whether the items were received and used in the interest of the Council because they were mainly consumables.

996. For accountability of stores, we recommended and management accepted to engage a substantive storekeeper to keep proper records on the Council’s store.

MINISTRY OF COMMUNICATION

GHANA INVESTMENT FUND FOR TELECOMMUNICATIONS (GIFTEL)

Introduction997. This report covers the audited accounts of Ghana Investment Fund for Telecommunications for the year ended 31 December 2008.



Operational Results998. GIFTEL ended its operations for the year with a surplus of GH¢14,570,670 as against the previous year’s surplus of GH¢7,532,823, representing an increase of 93.4%. The main performance indicators are shown in Table 126:


GH¢2007GH¢

% Change

IncomeContributions from Operators 18,071,704 7,482,741 141.5Other Income 1,383,880 598,804 131.1Total Income 19,455,584 8,081,545 140.7ExpenditurePersonnel Emoluments 292,476 243,094 20.3Administrative & General Expenses

4,592,438 305,628 1,402.6

Total Expenditure 4,884,914 548,722 790.2Surplus / (Deficit) 14,570,670 7,532,823 93.4

999. Total Income for the year 2008 amounted to GH¢19,455,584 as compared to GH¢8,081,545 in 2007, representing an increase of 140.7%. The significant rise in Income was due to 141.5% increase in Contribution of Telecom Operators and 131.1% increase in Other Income which was derived from the interest from Investments.

1000. Total Expenditure registered a 790.2% increase from GH¢548,722 in 2007 to GH¢4,884,914 in 2008. This was largely due to an expenditure of 3,333,200 incurred on Construction of Mast during the year.

Financial PositionDetailed in Table 127 are the movements in the financial position.


GH¢2007GH¢

% Change

Non-Current Assets 15,680,731 11,368,845 37.9Current Assets 11,262,428 11,200 100,457.4



Current Liabilities 1,124,439 131,995 751.9Net Assets 25,818,720 11,248,050 129.5Current Ratio 10.0:1 0.1:1

1001. Non-Current Assets which increased by 37.9% during the year was made up of Investments in Treasury Bills and Bank Notes.

1002. Current Assets rose from GH¢11,200 in 2007 to GH¢11,262,428 in 2008, representing a 100,457.4% increase. The increase was mainly due to an Account Receivable from Ghana Telecom of GH¢10,900,000.

1003. Current Liabilities also increased from GH¢131,995 in 2007 to GH¢1,124,439 in 2008, recording a 751.9% increase.

1004. Current Ratio for 2008 shows a healthy position of 10.1:1, meaning GIFTEL can meet its short-term obligations when they are due.

MINISTRY OF JUSTICE AND ATTORNEY-GENERAL’S DEPARTMENT

COMMISSION ON HUMAN RIGHTS AND ADMINISTRATIVE JUSTICE

Introduction

1005. This report covers the audited accounts of the Commission on Human Rights and Administrative Justice for the two-year period ended 31 December 2008.

Operational results1006. The year 2007 ended with a surplus of GH¢243,386.52 as against a surplus of GH¢160,366.31 recorded in 2006, registering an increase of GH¢83,020.21 or 51.8%. This was due to increases of 32.8% in subvention from GH¢2,921,047.00 in 2006 to GH¢3,880,234.42 in 2007 and other



income by GH¢ 480,364.46. Table 128 is a summary of the income and expenditure accounts for the year 2007.


Income2007GH¢

2006GH¢

%Change

Subvention 3,880,234.42 2,921,047.00 32.8Other income 481,364.46 1,000.00 48,036.4

4,361,598.88 2,922,047.00 49.3ExpenditurePersonnel emoluments 2,589,978.01 2,030,237.86 27.6Administration 1,359,411.28 621,833.13 118.6Service 168,823.07 109,609.70 54.0

4118,212.36 2,761,680.69 49.1Surplus 243,386.52 160,366.31 51.8

1007. Total income for the year rose by GH¢1,439,551.88 from GH¢2,922,047.00 in 2006 to GH¢4,361,598.99 in 2007. This was due to a 32.8% increase in Government Subvention and increase in HIPC and Donor receipts during the year under review.

1008. Total expenditure also rose by GH¢1,356,532.36 or 49.1% from GH¢2,761,680.69 in 2006 to GH¢4,118,212.36 in 2007. The rise was due to increases in the various expenditure items. Pay rise accounted for the increase in personnel emoluments whilst increases in expenditure on running cost of official vehicles, maintenance of office machines and stationery largely caused the rise in administrative expenses. The rise in service activity cost was attributed to increases in departmental and overseas training.

Financial positionFixed assets1009. Fixed assets stood at GH¢598,339.92 as at the end of 2007, representing an increase of GH¢283,244.42 or 89.9% over the 2006 figure. Table 129 is the details.



Table 129: Balance Sheet as at 31 December 2007 and 2006 2007GH¢

2006GH¢

%Change

Fixed Assets 598,339.92 315,095.50 89.9Current Assets 180,907.46 186,146.64 (2.8)Current Liabilities 34,618.71 - 100.0Net Current Assets 146,288.75 186,146.64 (21.4)Net Total Assets 744,628.67 501,242.14 48.5

1010. The increase was due to acquisition of computers, motorbikes, motor vehicles, generators and SSNIT flats.

Current assets1011. Current assets decreased by GH¢5,239.18 or 2.8%. The decrease was due to fall in Bank balances.

Current liabilities1012. Current liabilities recorded an amount of GH¢34,618.71 at the close of 2007. This was due to the non- remittance of 5% withholding tax totalling GH¢24,418.71 to IRS and deductions of staff loans and advances amounting to GH¢10,200.00 to the Controller and Accountant-General’s Department at the end of the financial year.

Liquidity position1013. The liquidity position as measured by a current ratio of 5.2:1 indicates that the Commission would be able to meet its short-term obligations falling due.

Accumulated fund1014. Net Assets of the Commission increased from GH¢501,242.14 in 2006 to GH¢744,628.67 in 2007, a growth of GH¢243,386.53 or 48.5%.



MANAGEMENT ISSUES

Financial statements1015. Contrary to Section 54 of the FAA, the 2007 financial statement of the Commission was submitted for audit in September 2009; a period of 21 months after the end of the 2007 financial year. Management was yet to finalise its 2008 financial statement for validation at the time of reporting.

1016. The lapse, which was due to the Accountant’s failure to maintain ledgers from which the annual accounts could be prepared, could affect stakeholders’ decision making on CHRAJ’s financial matters.

1017. Management accepted our recommendation to improve the accounting system by maintaining ledgers to ensure timely preparation and submission of financial statements within the stipulated period.

Unpresented payment vouchers – GH¢720,768.451018. As a result of lack of filing cabinets and haphazard arrangement, payment vouchers totalling GH¢720,768.45 could not be located and produced for audit .

1019. The foregoing situation contravened Regulation 262 of L.I 1802 which provides that a head of department shall ensure that financial and accounting records are preserved in a manner that facilitates ready access for reference.

1020. We were unable to ascertain the occurrence and regularity of the transactions for which the payments were made and whether the Commission received value for money for the amounts expended.

1021. We recommended that management should provide sufficient filing cabinets and train officers, in referencing and maintenance of records for easy access and retrieval. Besides, the



misplaced vouchers should be traced and presented for audit, otherwise the accounting officers should be held liable.

Failure to respond to previous audit report 1022. Notwithstanding Section 29 (1) of the Audit Service Act 2000, Act 584, management had not responded to our report No. B/CAD/7/9/Vol.2 /214 dated 28 February 2008 on the audit of the Commission’s accounts for the 2005 and 2006 financial years.

1023. Management’s non-adherence to the provisions of Act 584 cited caused the anomaly. This in effect undermined the value that the audit could have added to the effective and efficient management of CHRAJ and resulted in recurrence of some of the anomalies highlighted in the report under reference. We were also unable to assess the level of implementation of recommendations made in our previous report.

1024. We advised management to adhere to the above stated regulation and act accordingly.

1025. Management expressed its regret for the delay and informed us that it had referred the report to ARIC for the necessary action to be taken.

Imprest not accounted for –GH¢36,005. 35 1026. We noted that between February 2007 and July 2008, a sum of GH¢36,005.35 was granted to officers of the Commission for the running of various programmes. We observed further that though the programmes had ended, the amounts had neither been retired nor treated as an advance to the imprest holders as at the time of reporting.

1027. The lapse was in contravention to Regulation 288(1) of L.I. 1802, which states that “imprest shall be retired at the close of a financial year and any imprest not so retired shall be adjusted to a personal advance account in the name of the imprest holder”.



1028. We could therefore not determine whether the monies were used for the intended purpose. We also viewed this lapse as a factor, which would affect the preparation of financial statements, as the budgeted figures might be used instead of actual.

1029. We noted that ineffective supervision coupled with the internal audit unit’s failure to review transactions accounted for the lapse.

1030. We recommended that the officers involved be made to account for the imprest or the sum be adjusted to a personal advance account in their names.. We also recommended that management should step up supervision and the Internal Auditor should regularly review transactions of the Commission to forestall misapplication of funds.

1031. Management informed us that the officers involved had been contacted to account fully for the imprest, else the amount would be charged against their salaries.

COPYRIGHT OFFICEIntroduction

1032. This report relates to the audited accounts of the Copyright Office for the period 1 January 2006 to 31 December 2008.

MANAGEMENT ISSUES

Utilisation of Internally Generated Funds without authority 1033. Contrary to Regulation 17(b) of LI 1802 on retention, , an amount of GH94,694.85 representing 99.99% out of IGF collection of GH94,699.56 for the review period was used to meet the Office’s administrative expenses without approval.



1034. Management’s non-adherence to the regulations stated above was a breach of financial discipline thus adversely affecting government’s revenue generation efforts.

1035. We recommended and management agreed to obtain the required approval to retain its IGF, otherwise all monies collected should be paid promptly and in gross into the Consolidated Fund.

Revenue collected not accounted for - GH¢ 47,860.661036. Our review of revenue collections disclosed that authorised GCRs used in the collection of IGF amounting to GH¢1,320.00 and 19 unauthorised GCRs for the collection of Gamugram and Audio Visual revenues totaling GH¢46,540.66 remained unaccounted for as at the time of reporting.

1037. We also noted that the unapproved receipt books were not recorded in the stock register. In another development, 7 GCRs listed below issued from the stock register for revenue collections were not presented for audit. There were also no entries of sums collected with these books in the cash book.

Unaccounted GCRsDate of issue Receipt book

From to Recipient

6/2/06 809301 – 809400 6/2/06 808501 – 808600 Copy Ghana6/2/06 808701 – 808800 4/12/07 036401 – 0369500 Millicient6/2/06 809801 – 809900 Kumasi Office6/2/06 809901 – 810000 Kumasi Office3/7/07 0369701 – 036980 Cynthia Dordoye

1038. We attributed these omissions to lack of internal checks and management supervision over the Accounts Section, which if not addressed could result in loss of revenue.



1039. We recommended that the Accountant should account for the amount of GH¢47,860.66 without delay and advised management to strengthen its internal controls to forestall a recurrence of the anomaly. Additionally, the procurement of all value books should be routed through C&AG and recorded in the stock register.

1040. Management acknowledged the validity of our observation and informed us that the Accountant had been requested to respond to the issue for appropriate redress.

Unrecovered loans- GH¢ 1,810.001041. Contrary to Regulation 111 of L.I. 1802 which requires“a head of department being an administering authority for any class of advance to keep accounts at the departmental headquarters that show all advances and recoveries made”, we observed that management failed to maintain accounts on advances amounting to GH¢1,550.00 granted to three employees and a subsidiary.

1042. The advanced sum was from the Gamugram Account, which was not meant for such purpose.

1043. We also noted that between March 2006 and September 2006, management granted a loan of GH¢ 260.00 to an officer.

1044. The Accountant could also not produce any evidence of recoveries made from the loans granted. Consequently, a total loan amount of GH¢1,810.00 remained unrecovered as at the time of reporting.

1045. We advised management to ensure recovery of the amount of GH¢1,810.00 from the debtors and maintain proper books of accounts on advances in order to facilitate monitoring and prompt repayments.



Loss of VAT revenue-GH¢6,941.521046. The Office transacted business totaling GH¢9,216.47 with six non-VAT registered companies in violation of Section 30(2) of the Financial Administration Act (FAA) 2003, (Act 654), resulting in the loss of tax revenue amounting to GH¢1,382.47 to the state.

1047. In a further development, we noted that payments to Ericsaac Press amounting to GH¢37,060.30 who is VAT registered were not properly acquitted with documents such as the payee’s invoices, LPOs and VAT/NHIL Invoices to enable us authenticate the propriety of the expenditure and also whether the VAT component of GH ¢5,559.05 would be remitted to the VAT authorities.

1048. We recommended and management accepted to adhere strictly to Section 30(2) of the FAA and the relevant provisions of the VAT law in its subsequent procurements to prevent tax losses to the state. We also advised that a VAT invoice should be obtained from Ericsaac Press to confirm remittance of the VAT charged of GH¢5,559.05 to the VAT authorities, otherwise the amount should be recovered into the Office account.

Improper keeping of vehicle log books1049. Our audit disclosed that fuel coupons amounting to GH¢12,468.00 procured during the period was not logged even though log books were available. A follow up however revealed that GH¢3,460.00 worth of coupons out of the amount purchased were issued to staff whilst the remaining amount of GH¢9,008.00 was allegedly issued for use by the official vehicles.

1050. Much as we agree with management that members of staff need to be motivated we are of the view that such benefits must be included in staff conditions of service for legitimacy.

1051. In a related issue, fuel purchased from imprest totaling GH¢1,799.00 was without receipts, neither was it recorded in any log book for accountability.



1052. The audit team identified lack of knowledge on the proper keeping of vehicle log books and ineffective supervision as the cause of this lapse. As a result, we could not ascertain whether the fuel was used in the furtherance of the Office’s programmes.

1053. We recommended and management agreed to educate and supervise drivers on keeping of log books to ensure effective control over fuel to prevent misuse.

Non-preparation of financial statements1054. Contrary to the provision of Section 54 of the FAA, management failed to prepare financial statements for the three years reviewed. As a result, we could not determine the financial position over the years as well as express an opinion on the financial statements to aid stakeholders in their decision-making.

1055. Lack of supervision, improper records keeping and non-adherence to the above stated requirement by the Accountant caused this lapse.

1056. We recommended that the Accountant prepares the financial statements for the three years reviewed and our office notified. We also urged management to ensure that the Accountant complies with Section 54 of Act 654 in subsequent years.

Absence of Audit Report Implementation Committee (ARIC)1057. Regulation 196(4) of L.I. 1802 and Section 30 of the Audit Service Act require every department as part of its accounting function to establish an ARIC to pursue the implementation of recommendations in audit and other internal monitoring reports.

1058. We observed however that the Office had not established an ARIC as otherwise required under the regulation stated above. Management’s non-compliance to the above stated regulation resulted in the occurrence of the anomaly.



1059. We emphasised the support that ARIC would give to management in implementing audit recommendations and advised management to ensure that an ARIC is established as early as possible to mitigate the recurrence of weaknesses identified in audits and other monitoring reports.


Unqualified monitoring team member1061. Our review revealed that Mr. Joshua Peter Odoom who was a member of the Anti-Piracy monitoring team was neither a staff of the Copyright Office nor did he fall within any of the categories of eligible members prescribed by Section 50 of Act 690.

1062. He presented himself as a clerk of court when we interviewed him on Anti Piracy issues; a post that was non-existent in the Copyright Office. He was also interviewed by the Daily Guide newspaper on Anti Piracy issues which was published in its 9 July 2009 edition.

1063. The Administrator informed us that Mr. Odoom was not a staff and therefore not on the payroll of the Office but lived on tips from him, and Anti-Piracy allowances. This in our opinion was irregular.

1064. In order to prevent probable acts by Mr. Odoom that could tarnish the image of the Office, we advised management to immediately relief him of his duties as a member of the anti-piracy team.

MINISTRY OF YOUTH AND SPORTS

NATIONAL SPORTS COUNCIL

Introduction1065. This report relates to the National Sports Council for the two-year period ended 31 December 2008.



Operational results

1066. The year 2008 ended with operational surplus of GH¢533,661.51 which represented 112% increase over the previous year’s surplus of GH¢251,703.42. Table 130 is a summary of the Council’s operational performance:

Table 130: Income statement for 2008

Income2008GH¢

2007GH¢

% Increase/Decrease

Subvention 3,072,015.64 2,290,825.74 34Service Grant 1,191,521.06 195,227.78 510Other Income 516,476.32 136,725.95 278Gate Proceeds 1,707,019.92 187,502.70 810Total 6,487,032.94 2,810,282.17 131Less ExpenditurePersonal Emolument 1,189,061.30 618,452.68 92Administration Exp. 2,156,648.99 1,291,397.72 67Service Activity 1,267,329.79 538,187.88 135Match Expenses 1,340,331.35 110,540.47 1112.5

Total 5,953,371.43 2,558,578.75 133Surplus 533,661.51 251,703.42 112

1067. Total income went up by 131% over the previous year’s figures. The increase in the income was due to significant increases in Service Grant (for the Associations activities) and Gate proceeds by 510% and 810% respectively during the year 2008. The increase in gate proceeds resulted from effective operational activities of the stadia.

1068. Total expenditure also rose by 133%, from GH¢2,558,578.75 to GH¢5,953,371.43. Prominent among the expenditure items were Service Activities and Match Expenses, which increased by 135% and 1112.5% respectively. The significant increases in these expenditure items for 2008 was because in 2007 the stadia were closed down for renovation hence not much activity was undertaken.



Financial position

1069. The Council’s fixed assets which stood at GH¢480,342.44 in 2007 went up by 15% to register GH¢552,212.06 at the end of 2008. The increase was due to the Council’s support in the stadium renovation and acquisition of office equipment and plant.

1070. Current assets also rose from GH¢139,892.82 in 2007 to GH¢602,061.84 in 2008, representing 330% increase which was mainly due to 438% increase in bank balance.

1071. Current liability also rose from ¢61.49 to ¢438.62 due to over-deductions of loans granted individuals.

1072. The Council’s current ratio stood at 1373:1 in the year 2008 indicating a very high solvency position. The high liquidity ratio was due to 438% increase in the bank balance of GH¢104,542.94 in 2007 to GH¢562,028.24 in 2008 due to late receipt of IGF from hiring of NSC facilities.

1073. We advised management to utilise its funds at the bank effectively and economically to increase efficiency in mandated activities and raise the image of the Council.

1074. The Accumulated Fund increased by 86% from GH¢620,173.77in 2007 to GH¢1,153,835.28 in 2008 as a result of the surplus recorded.

MANAGEMENT ISSUES

Excess expenditure due to duplication of job 1075. Management on 15 December 2008 signed an agreement with a consultant for services, which were similar to the roles and responsibilities assigned the marketing department of NSC.



1076. We noted that the services to be provided by the consultant were to attract a fee of 4% of proceeds from rentals successfully negotiated. In effect the Council would be incurring additional cost for the same services.

1077. Our audit further revealed that in November 2008, when the Council had not signed the contract with the consultant, the Council entered a into a five year agreement with National Investment Bank (NIB) for offices at Baba Yara Stadium. The initial payment by NIB was GH¢100,800.00 out of which the consultant was paid GH¢4,032.00 representing 4% of the amount.

1078. We advised and management agreed to abrogate the contract and allow the Marketing Department of NSC to perform its mandate. We recommended also that the consultant should refund the illegitimate payment of GH¢4,032.00.

Outstanding staff loans: GH¢ 4074.65 1079. Regulation 116 of L.I. 1802 states “the outstanding balance of any advance to public officer becomes debt to government and is fully recoverable at the date of the public officer’s leaving the service”

1080. However, our review revealed that an amount of GH¢ 3,523.09 and GH¢ 551.56 owed by 17 former officers as vehicle and salary advances respectively were neither recovered from their salaries nor entitlements before their separation.

1081. Poor internal controls and lack of effective measures to ensure the timely recovery of the loans had caused this anomaly which might result in loss of funds to the state if not recovered.

1082. We advised management to retrieve the money from the former officers or their relatives where appropriate without further delay. Also, an effective mechanism should be put in place to ensure full recovery of all loans before separation of staff from the Council as required by the above stated regulation.



1083. Management responded that it had decided to write to the Auditor General for authority to write off the debt.

1084. We made management aware that the Auditor-General is not mandated to authorise the write-off of government debts.

Failure to obtain VAT/NHIL invoice/receipts1085. Contrary to Regulation 19 of the Value Added Tax (VAT) Regulations, 1998 (LI 1646), a company, El Sayns Company Limited which transacted business with the Council and charged VAT/NHIL of GH¢216.00 failed to issue the appropriate VAT/NHIL invoice.

1086. We attributed the irregularity to the failure by the accounts department to demand the VAT/NHIL invoice before payment was made to the supplier. This omission could lead to a loss of tax revenue of GH¢216.00 to the state as the supplier was not bound to remit the tax amount to VAT Service.

1087. We advised management to ensure that the invoice is obtained from the supplier or the amount should be recovered.

Unearned salaries – GH¢ 1,870.981088. Due to inappropriate certification of salary payment vouchers, delays in notifying the Controller and Accountant General Department (C&AGD) to delete names of separated employees from payroll and lack of communication with respective banks, an amount of GH¢1,870.98 was wrongly paid to four separated staff of the Council between February 2007 and March 2009.

1089. Management’s inaction contravened Regulations 298 and 304 (1) of L.I. 1802.

1090. To forestall loss of funds, we advised management to pursue recovery of the unearned salaries from the former employees and pay same to government chest. We also advised management to in future, promptly notify C&AGD and bankers of separated staff for



appropriate action to be taken to prevent the occurrence of the anomaly.

Missing furnishing items from the Council’s Guesthouse – GH¢ 2,722.851091. Section 32 of the FAA requires that a person in control of government stores is responsible for the proper custody, care and use of those stores and a head of a department is also responsible for thegeneral management of government stores held within the department and for the due performance of the duties of subordinate staff in relation to the stores.

1092. We observed that items amounting to GH¢2,722.85 for furnishing the Council’s Guest House at Labone Estate had been stolen.

1093. We were rather given a report by the procurement section of the Council with the explanation that the Police report was not ready, upon our request for a Police report on the theft.

1094. The foregoing situation indicated that management failed to take proper care and custody of the items contrary to the above stated Regulation. This action also contravened FAR 233 which stipulates the action to be taken by a head of department when a loss is detected. As a result the state has lost an amount of GH¢2,722.85.

1095. We advised that the officer responsible for the Guest House should account for the loss and effective security measures should be put in place to safeguard all the Council’s property.

1096. Management accepted our recommendation and informed us that the matter was being pursued with the urgency that it deserved.



Council’s vehicle being used by the former Chief Executive 1097. Our physical verification of the Council’s vehicles showed that one Toyota Hilux vehicle with registration No GN 8153Y was not available for inspection. We were informed that the vehicle, which was allocated to the former Chief Executive, was not returned when he was posted to the Sports Ministry. We did not however sight any documentary evidence that the vehicle was allocated to the former Chief Executive.

1098. Thus, the vehicle was not being used in the interest of the Council and the possibility of the vehicle going missing cannot be ruled out since management did not insist on re-possessing it for the use of officers of NSC.

1099. Management accepted our recommendation to retrieve the vehicle from the former Chief Executive as early as possible, in order to assist in the smooth running of the Council.

NATIONAL YOUTH COUNCIL Introduction1100. This report covers the audited accounts of the National Youth Council for the year ended 31 December 2008.

Operational results1101. The year ended with an operational surplus of GH¢ 29,445.73 as against a surplus of GH¢ 137,815.23 realized in the previous year.

1102. Presented in Table 131 is the summary of the Income and Expenditure Account for the year ended 31 December 2008.

Table 131: Comparative income and expenditure account for 2008 and 2007

Income 2008GH¢

2007GH¢

%Change

Government subvention 1,070,336.31 1,474,540.44 (27.4)Hiring of facilities 6,026.00 3,835.00 57.1



Sales of registration forms

383.00 962.50 (60.2)

Other income 910.00 1,840.00 (50.5)Total 1,077,655.31 1,481,177.94 (27.2)ExpenditurePersonnel Emolument 577,553.63 912,404.13 (36.7)Administration Activity 205,936.52 207,018.19 (0.5)Service Activity 264,719.43 223,940.39 18.2Total 1,048,209.58 1,343,362.71 (21.97)Surplus/ (Deficit) 29,445.73 137,815.23 (78.63)

1103. Total income decreased by 27.2% to GH¢1,077,655.31 compared with GH¢ 1,481,177.94 in the previous year. This occurred mainly as a result of a 27.41% decreases in Government Subvention, receipts from the sales of registration forms and other income. The decline in the sales of registration forms was attributed to low sales of forms in 2008, since there was high patronage in 2007 being the introduction year.

1104. Total expenditure accordingly witnessed a decrease of 21.97% over the previous years’ figure of GH¢1,343,362.71 to GH¢1,048,209.58. The fall was mainly due to decrease in expenditure on personnel emolument which resulted from the taking over of the payroll by Controller and Accountant General in July 2008. Financial positionThe Council’s financial position for the year ended 31 December 2008 is presented in Table 132.

Table 132: Financial position as at 31 December 2008 and 20072008GH¢

2007GH¢

%Change

Fixed Assets 618,808.94 629,619.69 (1.72)Bank balance 47,749.16 7,492.68 537.3

1105. Fixed assets decreased by 1.72% from GH¢ 629,619.69 in 2007 to GH¢ 618,808.94 in the year under review because of depreciation charges.



1106. The 537.3% increase in the Council’s bank balance was due to non payment of maintenance allowance to staff. We were informed that the matter had been resolved and subsequently staff enjoys their maintenance allowance.

MANAGEMENT ISSUES

Unaccounted fuel – GH¢ 20,425.001107. Purchases of fuel and lubricants amounting to GH¢20,425.00 out of GH¢25,900.00 in 2008 could not be traced into vehicle logbooks to confirm procurement and utilization. Management responded that GH¢18,717.00 representing 91.6% of the unaccounted fuel was allocations to employees but failed to produce documentary evidence to justify the assertion.

1108. We could therefore not determine whether the fuel was used in the furtherance of the Council’s programmes and blamed this on weak controls, lack of supervision over the drivers by the transport officer and an ineffective Internal Audit Unit.

1109. We advised management to strengthen its internal controls and supervision and also ensure that the internal audit unit expands its scope of work to prevent diversion or misuse of fuel. We also recommended that the utilisation of fuel and lubricants amounting to GH¢20,425 should be accounted for.


Failure to account for non-tax revenue – GH¢ 3,529.241111. We noted that a total non- tax revenue collection of GH¢3,529.24 for the period January to December 2008 was not accounted for. Also, a non-tax revenue of GH¢3,366.76 lodged into the Council’s operational account was not transferred into the Consolidated Fund but used to meet administrative expenses though the Council was not mandated to retain the revenue.



1112. This situation contravened Regulation 17 of the FAR 2004, LI 1802, which provides that a head of department should ensure that all non-tax revenue is efficiently collected, immediately lodged into the designated Consolidated Fund Transit bank account except in the case of Internally Generated Funds retained under an enactment.

1113. Management explained that due to insufficient budgetary allocation, the Centre used the income generated to pay the wages of six casual laborers and other cleaning expenses and that the unaccounted balance of GH¢3,529.24 together with other receipts have been lodged into the Council’s bank account in 2009.

1114. Our follow-up on management’s response revealed that only the amount of GH¢3,366.76 used for administrative expenses was refunded on 31 December 2008.

1115. We recommended that, the Accountant should be held liable for the unaccounted sum of GH¢3,529.24 and until management seeks approval to retain its Internally Generated Fund (IGF), all non-tax revenue should be promptly paid into the Consolidated Fund.

MINISTRY OF INTERIOR

NARCOTIC CONTROL BOARD

Introduction1116. This report relates to the audited accounts of the Narcotic Control Board for the year ended 31 December 2008.

Operational results1117. Total income registered an increase of 98.2% from GH¢697,388.91 in 2007 to GH¢1,382,271.36 in 2008. This was mainly due to an 83.32% increase in government subvention from GH¢665,388.91 in 2007 to GH¢1,219,848.33 in 2008 and capital grant which hither to was not available.



The performance indicators of the Board for the year under review are shown in Table 133.

Table 133: Income statement for 2008Items 2008

GH¢2007GH¢

% Change

IncomeGovernment Subvention

1,219,848.33 665,388.91 83.3

Other Receipts 5,890.79 32,000.00 (81.6)Capital Grant 156,532.24 - 100

Total Income 1,382,271.36 697,388.91 98.2ExpenditurePersonnel Emoluments

324,358.00 144,422.16 124.6

Administration 995,544.66 523,588.81 90.1Service 114,515.47 88,695.30 29.1

Total Expenditure 1,434,418.13 756,706.27 89.6Surplus/Deficit (52,146.77) (59,317.36)

1118. Expenditure incurred in 2008 totalled GH¢1,434,418.13 as against GH¢756,706.27 in the previous year, representing an increase of 89.6%. The expenditure component included personnel emoluments –GH¢324,358.00 (2007: GH¢144,422.16) representing a 124.6% increase; administrative activity – GH¢995,544.66 (2007: GH¢523,588.81); an increase of 90.1%, service activity-GH¢114,515.47 (2007: GH¢88,695.30) representing an increase of 29.1%.

1119. The increase in expenditure on personnel emolument was due to pay rise whilst increases in expenses on fuel and lubricants, special operations and foreign travels accounted largely for the rise in expenditure on administrative activity. The increase in expenditure on service activity was mainly attributed to the rise in expenses on vehicle repairs, foreign travels and world drug day.



1120. An operational deficit of GH¢52,146.77 was recorded at the close of the year reviewed, compared with a deficit of GH¢59,317.36 in the preceding year.

Financial position1121. Recorded in Table 134 are the movement in balance sheet items.

Table 134: Financial position as at 31 December 2008 and 20072008GH¢

2007GH¢

%Change

Fixed Assets 1,787,773.17 692,630.16 158.1Current Assets 95,468.17 42,812.20 123.0Current Liabilities 296,876.23 142,062.11 109.0Net Current Liabilities 201,408.06 99,249.91 102.9Net Assets 1,586,365.11 593,380.25 167.3

1122. The Board’s fixed assets went up by 158.11% from GH¢692,630.16 in 2007 to GH¢1,787,773.17 in 2008 .The increase arose from the purchase of 2 vehicles, computers, some equipment and furniture & fittings as well as additional payment for the building project which had been completed as at the time of reporting.

1123. Current assets of the Board recorded a 123% increase from GH ¢42,812.20 in 2007 to GH ¢¢95,468.17 in 2008. The increases in cash at bank and staff loans, which were the components of current assets, accounted for the rise. Current liabilities which was made up of amount owed the Ghana Police Service in respect of fuel supplied to the Board and taxes due IRS witnessed a rise of 109% from GH¢142,062.11 in 2007 to GH¢296,876.23 in 2008.

1124. Liquidity outlook as measured by a current ratio of 0.32:1 (2007: 0.30:1) remained unfavorable, indicating the inability of the Board to discharge its short- term obligations as and when they fall due.



1125. Net Assets of the Board grew by 167.3% due mainly to the addition of GH¢1,201,853.41 to Capital Grants during the year under review.

MANAGEMENT ISSUES

Failure by two officers to settle surcharged amounts – GH¢979.50 1126. Two drivers of NACOB, Messrs Benson Asare and Samuel Abbey, who were involved in separate accidents whiles on official assignments in 2008 failed to obtain Police reports. However, the Board spent GH¢479.50 and GH¢500.00 as repairs on a private vehicle No. GR5044 D and compensation to an accident victim.

1127. Though management decided to surcharge Messrs. Benson Asare and Samuel Abbey with the expenditure of GH¢479.50 and GH¢500.00 respectively, as at the time of reporting, the debts remained unpaid.

1128. The Accountant’s failure to recover the above stated expenses could adversely affect financial operations of the Board.

1129. We recommended that management should in future ensure that all motor accidents are reported and police reports obtained in order to apportion blame thereby preventing wasteful expenditure and dispute. We also recommended that the amount of GH¢979.50 be recovered from the affected drivers.

1130. Management informed us that the surcharged amounts would be treated as advances to the two officers .

Failure to issue VAT receipts/invoices1131. Two companies who transacted business with the Board were paid an amount of GH¢1,719.92, which included VAT/NHIL charge of GH¢85.83 but failed to issue VAT/NHIL invoices. We did not also sight any evidence of authorization by the Commissioner to print and issue their invoices.



1132. We could therefore not confirm the accountability of the tax revenue to VAT Service and attributed the anomaly to the failure of the Accountant to demand appropriate invoices from the payees when payments were made.

1133. We advised the Accountant to obtain VAT/NHIL receipts/ invoices from the companies involved otherwise the amount should be recovered from them. We also recommended that in future VAT/NHIL invoices should be obtained for all VAT/NHIL related payments.

Refund of air ticket without supporting documents – GH¢2,536.00

1134. The Board paid an amount of GH¢2,536.00 as refund of the cost of air ticket for an official who in November 2008 attended a meeting on narcotics in Priar, Cape Town.

1135. Contrary to best financial management practices, a photocopied invoice from the tour and travel consultants, Riali Consult was attached to the payment voucher. We further did not sight a receipt from Riali Consult; the travel agent formally acknowledging receipt of the payment.

1136. The anomaly occurred as a result of laxity in supervision at the accounts office.

1137. To prevent duplication of the payment, we recommended and management agreed to make available the original copy of receipt and invoice for our examination. Management also agreed to in future authenticate all payments with the originals of relevant documents.

Unearned salaries 1138. Five officers who resigned between August 2008 and November 2008 neither gave three months notice nor paid one month’s salary in lieu of notice as required by Article 8.1 of the conditions of service for employees of Narcotics Control Board. We



also noted that two of the officers, Richard Asante and Mariam Obeng Mensah enjoyed unearned salaries of GH¢661.26 and GH¢212.42 respectively. Furthermore, one of the affected officers, Emmanuel Asante failed to settle his loan balance of GH¢600.00 before leaving.

1139. The practice could lead to loss of funds to the Board.

1140. We recommended that efforts should be made to locate and recover from the former employees of the Board all monies due.

1141. Management informed us that, it had written to the ex-employees to refund the unearned salaries and other amounts payable.

OTHER AGENCIES

NATIONAL DEVELOPMENT PLANNING COMMISSION

Introduction1142. This report covers the audited accounts of the National Development Planning Commission NDPC for the period 1 January 2006 to 31 December 2008.

Operational results1143. The Commission recorded a deficit of GH¢156,138.48 in 2008 as compared with an excess income of GH¢238,166.77 in 2007. Table 135 represents components of the Commission’s operational results


GH¢2007GH¢

% Change

GoG Funds 1,956,529.77 2,286,891.31 (14.45)Development Partner Support 375,301.00 286,560.66 30.97Other Income 1,208.10 NIL 100.00Total Income 2,333,038.87 2,573,451.97 9.34ExpenditurePersonal Emoluments 245,643.44 258,024.10 (4.80)Admin. Activities 276,374.25 286,905.42 (3.67)



Service Activities 1,063,170.93 1,070,173.49 (0.65)Investment 351,030.20 262,097.79 33.93Project Matching Fund 174,110.00 160,422.00 8.53Development Partner Support 378,848.53 297,662.40 27.28Total expenditure 2,489,177.35 2,335,285.20 6.59Excess/Deficit (156,138.48) 238,166.77 (165.56)

1144. Total income of the Commission decreased by 9.34% fromGH¢2,573,451.97 in 2007 to GH2,333,038.87 in 2008. The decrease was as a result of the Commission’s inability to receive its fourth quarter subvention before the financial year ended. The Commission however registered a rise of 30.97% from the Development Partner Support from GH286,560.66 in 2007 to GH375,301.00 in 2008. Development Partner Support represent budget support from the Development Partners, namely UNICEF, UNDP and the World Bank.

1145. Total expenditure on the other hand went up by 6.59% from GH2,335,285.20 in 2007 to GH2,489,177.35 in 2008. The rise in the total expenditure was mainly due to increase in investment activity and development partner support expenses of 33.93% and 27.28% respectively. The increase in investment activity arose from the construction on new office building and furnishing of both the new and old office building. Expenditure on development partner support increased by 27.28% from GH 297,662.40 in 2007 to GH378,848.53 in 2008.

Financial position1146. Current assets of the Commission were made up of only the balances on the various bank accounts at the end of the year. This showed a downward movement of 48.88% from GH319,457.70 in 2007 to GH163,319.22 in 2008 due to the non-receipt of fourth quarter subvention. The Commission had no current liabilities as at the year-end, showing its ability to discharge short-term obligation falling due. The details are provided in Table 136.



Table 136: Financial position as at 31 December 2008 and 2007Assets 2008

GH¢2007 GH¢

% Change

Current assets 163,319.22 391,457.70 (48.88)Represented by: Accumulated Fund

163,319.22 391.457.70 (48.88)

1147. The accumulated fund of the Commission stood at GH¢163,319.22 (2007: GH¢319,457.70) as a result of the deficit recorded.

ELECTORAL COMMISSION

Introduction1148. This report relates to the audited accounts of Electoral Commission (EC) for the year ended 31 December 2008.

Operational Results1149. Government Subvention was the main source of income to the Commission, constituting 88.5% of Total Income. The Total Income rose from GH¢8,210,006 in 2007 to GH¢73,393,758 in 2008, an increase of 794.0%. The increase in Income was attributed to the presence of major electoral activities within the year under review. They generated Other Incomes from Donor Grants (GH¢2,708,052), Miscellaneous Income (GH¢3,874,310) and Transfer from Capital Grant (GH¢2,940,986).

1150. Total Expenditure also increased by 714.0% due to a 2,365.5% in Registration and Election Expenses and a149.1% increase in General and Administrative Expenses. The performance indicators are shown in Table 137.

Table 137: Performance indicators for 2008 and 2007Item 2008

GH¢2007GH¢

% Change

IncomeGovernment Subvention 73,393,758 8,210,006 794.0Donor Grants 2,708,052 19,574 13,734.9



Miscellaneous Income 3,874,310 783,789 394.3Transfer from Capital Grant 2,940,986 13,549 21,606.3Total Income 82,917,106 9,026,918 818.6ExpenditureRegistration & Election Expenses

52,944,335 2,147,390 2,365.5

General & Administrative Expenses

14,738,685 5,917,299 149.1

Depreciation 7,139,687 1,126,865 533.6Total Expenditure 74,822,707 9,191,554 714.0Surplus / (Deficit) 8,094,399 (164,636) (5,016.5)

1151. The Commission recorded a surplus of GH¢8,094,399 for 2008 from a deficit of GH¢164,636 in 2007.

Financial Position1152. Presented in Table138 are the movements in the financial position for the two comparative years.

Table 138: Assets and Liabilities for 2008 and 2007Item 2008

GH¢2007GH¢

% Change

Fixed Assets 7,505,854 2,508,223 199.2Work-In-Progress 2,105,864 1,567,645 34.3Current Assets 5,382,194 988,340 444.6Current Liabilities 198,452 577,749 (65.7)Net Current Assets 5,183,742 410,591 1,162.5Net Assets 14,795,460 4,486,459 229.8Current Ratio 27.12:1 1.71:1

1153. Fixed Assets stood at GH¢7,505,854 at the end of 2008 (2007: GH¢2,508,223); an increase of 199.2%. Additions of GH¢9,196,333 to Assets accounted for the increase.

1154. Work-In-Progress recorded a 34.3% increase from GH¢1,567,645 in 2007 to GH¢2,105,864 in 2008.



1155. Current Assets also rose by 444.6% from GH¢988,340 in 2007 to GH¢5,382,194 in 2008 due mainly to a 476.1% rise in Bank and Cash Balances.

1156. Current Liabilities reduced by 65.7% from GH¢577,749 in 2007 to GH¢198,452 in 2008.

1157. Net Assets increased by 229.8% from GH¢4,486,459 in 2007 to GH¢14,795,460 in 2008.

1158. The Current Ratio of the Commission showed a favourable position of 27.12:1 as against 1.71:1 in 2007.

MANAGEMENT ISSUESTitle deeds1159. We did not sight evidence of ownership of most of the lands whose figures have been included in the financial statements. The absence of title deeds raises legal issues as to evidence of ownership of the lands on which the buildings are cited.

1160. We recommended that, the Commission’s Estate Department should liaise with the appropriate Government authorities to see to it that indentures are duly prepared and signed for registration.

NATIONAL COMMISSION FOR CIVIC EDUCATION

Introduction1161. This report relates to the audited accounts of the National Commission for Civic Education for year ended 31 December 2008

Operational results1162. The Commission ended the year 2008 with a deficit of GH¢844,905.88 as compared with the previous year’s deficit of GH¢771,438.99. Table 139 is a summary of the Commission’s operational results for the two comparative years.




GH¢2007 GH¢

% Change

Personnel Emoluments 3,710,317.77 2,756,516.22 34.6Administration 1,415,196.30 1,231,651.34 14.9Service/Programme 230,532.00 164,956.00 305.6Other income 894,684.00 26,674.40 1,610Total Income 6,250,730.07 4,179,797.96 49.5Expenditure Personal Emoluments 3,711,477.26 2,755,817.89 34.7Administration 1,417,123.72 1,227,754.85 15.4Service/Programmes 1,457,573.73 940,453.15 55Other expenses 508,159.00 27,211.06 1,767.5Total Expenditure 7,094,333.71 4,951,236.95 43.3Deficit 843,603.64 771,438.99 9.4

1163. Total income witnessed a 49.5%increase from GH¢4,179,797.96 in 2007 to GH¢6,250,737.07 in 2008 Government subvention remained the major source of funding to the Commission. It constituted 86% (2007:99%) of total income for the period under review. Other income, comprising donor receipts from ILO-GH¢35,035.00, UNDP- GH¢25,624.00, Hans Seidel –GH¢386,525.00, HIPC- GH¢415,500.00, Project Citizen-GH¢7,000.00, and Vehicle Loan GH¢25,000.00 largely accounted for the significant increase in total income

1164. Total expenditure went up by 43.3% to GH¢7,094,333.71 in 2008 (2007: GH¢4,951,236.95). The increase was mainly due to a 34.6% rise in Personal Emoluments expenditure as well as expenditure on Services/Programmes and Other expenses. Financial position 1165. Fixed assets stood at GH¢1,050,462.00 as at the end of the period under review, (2007: GH¢1,639,513.00). This represented a decrease of GH¢589,051.00 or 36%, attributed to accumulated depreciation charges as a result of introducing depreciation policy.



1166. Current assets went down by GH¢4,389.12 from GH¢16,804.00 in 2007 to GH¢12,415.68 in 2008. Current assets comprised bank balances, car loan and salary advances balances. The Commission had no current liabilities as at the end of 2008, thus indicating its ability to meet short-term liabilities falling due.

1167. Accumulated Fund declined by GH¢593,440.15 or 36% to close the period at GH¢1,062,878 due to an increase of 9.4% deficit recorded.

MANAGEMENT ISSUES

Fuel coupons not recorded in vehicle logbooks1168. Our review revealed that, fuel coupons totaling GH¢37,619.20, issued to run official vehicles were not accounted for in the respective vehicle logbooks. Officers who used the vehicles also failed to certify journeys they undertook with the vehicles.

1169. As a result, we could not determine whether the fuel coupons were used in the furtherance of the programmes of NCCE. This practice was as a result of poor transport management controls.

1170. We therefore recommended and management agreed to put adequate control mechanism in place to ensure that fuel issued to drivers are properly accounted for while officers using the vehicles certify journeys they under take in compliance with Chapter 1604 of Stores Regulations 1984.